Countrywide Facing Sub-Prime Lawsuit

It's good to see more and more states stepping up and holding the executives at Countrywide accountable for their actions. It would be nice though it those same states actually did something to make sure that foreclosure help was available to all of the people who got suckered by Countrywide and other lenders.

Florida sued mortgage lender Countrywide Financial Corp (CFC.N) on Monday for predatory lending practices, alleging the company at the center of the U.S. mortgage crisis made subprime loans to people who could not repay them.

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The state alleged the company gave subprime loans to borrowers who could not repay them, loaned money at higher subprime rates to people who qualified for prime rate loans and engaged in other deceptive marketing and unfair trade practices, contrary to claims in its 10-K filings.

It will come as no surprise to me if all of the allegations are true. I know of a few people personally, including family, who were deceived by the predatory lending practices of Countrywide and I for one will be happy if some of those people in charge end up doing time for their crimes.

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