Indiana Takes Aim at Countrywide

August 24, 2008 No Comments »

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Like I mentioned earlier, this won’t be over until all 50 states and Puerto Rico have filed a lawsuit against former mortgage lender Countrywide Financial.

Indiana Attorney General Steve Carter is the latest to file a lawsuit against the Calabasas, CA-based home loan lender, accusing the company of unfair practices that landed borrowers in high-risk mortgages.

“A pattern of misleading and questionable practices has emerged from our investigation into home loans,” said Carter.

“These unfair lending practices may have harmed thousands of people and, in turn, negatively affected our communities and neighborhoods throughout the state.”

The investigation found that the most common misrepresentations pertained to prepayment penalties, the time period in which adjustable-rate mortgages would reset, and income documentation.

“Before more people face the prospect of foreclosure or actually lose their homes, we need to determine whether individual loans may have been originated through methods that violated Indiana law,” added Carter.

Carter has requested that Countrywide end the deceptive practices, void prepayment penalties on Countrywide originated loans, and void any portion of a Countrywide loan that resulted from the alleged deception.

The state is also seeking $15,500 per violation and consumer restitution, which is yet to be determined.

Indiana is the sixth state to take action against Countrywide, following similar action by California, Connecticut, Florida, Illinois, and West Virginia.

Funnily enough, the Indiana AG forgot to mention West Virginia…that hurts Indiana.

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