McCollum sues Countrywide mortgage

Attorney General Bill McCollum has filed a lawsuit against Countrywide Financial, one of the nation's largest mortgage companies, for allegedly offering loans to people who could not afford them and then charging misleading rates and penalties.

The company, which is being acquired by Bank of America, could face up to $10,000 for each infraction under the unfair and deceptive trade practice law. It is possible homeowners could get some relief should the case go Florida's way.

"It's unthinkable that a company would try to take advantage of someone's dream of homeownership," McCollum said in a statement this morning. The Attorney General’s Office received more than 150 complaints about Countrywide, prompting a subpoena in February and ultimately leading to the lawsuit.

Illinois and California sued Countrywide last week, accusing the company of persuading homeowners to apply for risky mortgages far beyond their means.

During a news conference this morning, McCollum was unsure how many people are affected but said the number of complaints suggest a large pool.

"Countrywide had a large portfolio and so while we might not have everybody complaining, the reality is that everybody they touched and made statements to that were not accurate or were misleading are affected by this," McCollum said.

Asked why state regulators had not intervened while the alleged  practices were ongoing, McCollum said, "Our role over in the Attorney General's Office is not to regulate .. you'll have to ask those regulators. What we're about here today and what our job in the Attorney General's office with consumer protection is to go after what we see and what we get in front of us."

McCollum said he is open to discussing a settlement with Bank of America.

Comments

WOW. A pretty liberal position for Mr.Conservative. How about the individual responsibility of people who obviously knew they were getting into a mortgage they couldnt afford. There's equal culpability in these cases.

This is Arthur Finkelstein's attempt at turning Bill McCollum into "Elliot Ness" and prepping him for another statewide run. Gotta move the old man to the center.

Oh Illinois and California sued Countrywide last week???

Illinois' Attorney General - DEMOCRAT
California's Attorney General - DEMOCRAT

Show me the proof that Countrywide put a gun to the heads of those people that signed those mortgages, then i'll be on board.

Until then, McCollum should shut his pie hole.

[Countrywide CEO is a typical Republican]

A securities filing shows Countrywide Financial Corp. CEO Angelo Mozilo earned some $10.8 million in total compensation and cashed out $121.5 million in stock options last year...for a total of $132 million.

Mozillo sold Countrywide stock literally a week before it announced that it would take a massive big bath on subprime writedowns!

This is your Typical Republican wealth transfer of taking from the poor and giving to the Rich.

[Karlos]

9:09am,

Read the Complaint. Stupid consumers are not the issue. For example:

"In practice, the Defendants created and/or permitted a culture where its own underwriters were threatened with termination for attempting to verify a borrower's ability to pay, or otherwise impeding loan approval."

9:37

the borrower still did not have to sign. If you can't understand your mortgage - you have no business signing it. That's your own fault and no one else's.

Then we should apply the same theory to the flippers who got greedy and now want taxpayers to bail them out.

9:51-

absolutely. no government (read taxpayer) intervention for anyone. that goes for the lenders as well as borrowers.

Let the market work it out.

[terminator]

countrywide is a piece of sh*t company whose been caught up in a number of illegal practices all over the country.
that's why this greaseball Mazilo cashed out. somebody should have cashed him out permanently.
go go Bill. bury these suckers.
poor Alex, what's she going to do with her BOA stock (now that BOA has acquired Countryside)?

I think I still have the letter from when McCollum was in Congress and I wrote him to complain about credit card company practices designed to drive up balances. It basically said "read the fine print and don't bother me with your complaints." I guess now that it's politically expedient he's going to get all consumer advocate on us.

[con]

Many underwriters and loan processors were threatened with termination, if they did not do as their superiors told them to do. To put it in layman terms,"LIE AT ALL COSTS" just get the dam loan approved.

Where McCollum has to go is into the NYSE BUILDERS affiliated mortgage companies who operated at an arms length entity. I am sure Bill does not have the backbone to do this as it may step on the NYSE Builders Lobbyists and campaign contributions. Countrywide was not alone in these assisted LIAR LOANS. You just do not have one company totally to blame.

As to the applicants and those that signed off on the committment, most Home Buyers are clueless as to the Mortgage Application Process and most of these people could not afford an attorney to look at the Mortgage Agreement.

It was endemic throughout the entire duration, mortgage fraud and the greed that went along with it. Remember Countrywide could not alone create such a financial debacle, others were doing like them and those other affiliated builder mortgage companies should all have to be looked at as possible investigations and violators.

[blah]

Go Bill! Closing agents do not give consumers the time or comfort with which to go over 10,000 pages of documents. Borrowers are looking to improve their lot in life but do not have millions of dollars to afford the resources needed to protect them. Banks were regulated to protect consumers. Banks violate the regulations. Banks pay. End of story. Go Bill! Go!

[AG's Staff]

is very liberal and very pro--interventionists in private business. Why would Bill appoint trish connor as a deputy?

McCollum is trying his hardest to move back to the center. He's positioning himself for another Senate run... or maybe Governor.

[McCollum]

Is rather ugly and has an even uglier wife (he looks handsome standing next to her) and will lose to any candidate.

[Trish Connor]

Nice lawsuit Trish. Go and stick the government into more and more business.

And they tell teachers to run schools like businesses.

BoA bought Countrywide because they had so much money invested in Countrywide that they were either going to become owners through Countrywide defaulting to BoA or BoA buying Countrywide out at a decent price. Nevertheless, BoA will now have to write off all the pending foreclosures and settlements with states that have sued. This just may be a huge nail, maybe not the final nail though, in BoA's coffin.

[Alex Sink]

I'm still going to beat you in the Governor's race even though you are sueing my company.

[h.scott]

I am so glad someone is looking into Countrywide . The foreclosure has hit my home. I tried to make arrangements thru their repayment,but to no avail. They kept putting me off until I had no choice.The officers would not even let me know that they denied me,but Icalled to inquire a couple of days before I had a sale date of my home.thanks

[Paul D. Harvill]

Thank you, Attorney General Bill McCollum

[shut up if you don't know]

It must be really pleasing to be so wealthy or so stupid (which in some cases are synonomous) that you have never had your face in the mud taking what life dishes out. I am a disabled combat veteran, I have severe PTSD, Hepititus C, Chronic Depresion, and Severe Anxiety. I take enough meds from the VA to keep a herd of hippos comatose, just so I can put up with the people I like.
The guy at Countrywide fed me such a line of BS that I couldn't fathom it all. He claimed to be a combat vet from the same war, mentioning a couple of very serious engagements. I believed him. He used all the little slang phrases that were common. After all was said and done, I found out he was too young, had never even been in the service, and used all that info to gain my trust.
So in a very real way, he DID hold a gun to my head. FY.

[na]

the loans were done from 2004-2006- remember these stupid people that did sub prime are now doing FHA loans at fixed rates....HMMMMMMMMM why did lenders sell arms - because they made more- on a sub prime deal a lender-not broker- if they kept and serviced it made 13K on a 250K loan!!! where on a prime loan it was half- more profits- if they did all these loans but did them on a 30 year fixed - you have no issue- come back in two years so we make more- all the smart know it alls notice how the you cant find the Bad loans anymore- because they were crap from the jump- everyone played the lotto- some won some lost- stop saying bailout - oh I bought a town house for 100 and sold for 300- now I can buy a 500 house blah blah blah- the same equity that helped id the same one that killed the market.... 100 perecent stated Income with a 620 score up to 500K loan LOL I know wealthy investors who took the money and ran- guys and gals who bought 10 inv properties during the time cause money was so cheap- so were they dumb- no they played the game differently- everyone wants to play but some know better and know the rules god bless