Florida Attorney General Bill McCollum said late last week that his office obtained a federal court order remanding his lawsuit against former mortgage lender Countrywide CEO Angelo Mozilo back to Broward County Circuit Court.
The suit, filed last June, in which Mozilo was named a defendant, addressed deceptive trade practices related to Countywide allegedly putting borrowers into misleading and/or unaffordable types of loans.
When the complaint was originally filed, Countrywide and Mozilo sought to remove the action to Federal Court in Florida and the case was later consolidated in the Southern District of California.
But the Federal Court has since agreed with Attorney General McCollum’s position that Mozilo should be held liable for Countrywide’s misleading and deceptive practices associated with the sale and marketing of mortgages and mortgage-backed securities.
“Angelo Mozilo should absolutely face a Florida court and Florida’s citizens for his business practices, especially those which victimized Florida homeowners,” said Attorney General McCollum, in a statement posted on his website.
Additionally, the Court agreed with the Attorney General’s claim that Mozilo’s management and participation in the day-to-day activities of Countrywide are sufficient grounds to subject Mozilo to stand trial in Florida state court.
“I am pleased the Federal Court sent the case back to our state court and my office will continue to aggressively pursue its case against Mr. Mozilo,” McCollum added.
At least someone out there still wants Mozilo to pay for his years of abusive lending. Hopefully this pans out.