Illinois, Countrywide in lawsuit
The state of Illinois is suing Countrywide for unfair and deceptive business practices, claiming the lender designed mortgage products with Wall Street in mind. Steve Henn reports other accusations against the company.
A woman walks past an office of Countrywide banking and home loans in Sun City, Arizona. (Richard A. Brooks/AFP/Getty Images)
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Scott Jagow: The mortgage lender Countrywide better round up the lawyers. The state of Illinois is suing the company. Marketplace's Steve Henn reports.
Steve Henn: In a civil lawsuit to be filed later today, Illinois Attorney General Lisa Maddigan accuses Countrywide of engaging in unfair and deceptive business practices.
The suit alleges that Countrywide designed and marketed its mortgage products with both eyes firmly fixed on Wall Street. Maddigan says the company set up incentives to boast its sales of bundled mortgages to investors at the expense of homeowners who were sold loans they couldn't possibly afford.
Lisa Maddigan: We also are finding people who have told us they were upfront about what their income and assets were. That's not what was put down in the documentation.
Maddigan plans to ask the Illinois courts to modify any deceptive or unfair loans and give her office 90 days to review any new foreclosures. Countrywide's press office did not return calls seeking comment.
This is the first suit of its kind brought by a state Attorney General, and it's being closely watched across the country.
In Washington, I'm Steve Henn for Marketplace.
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From Saint Louis County, MO, 01/26/2009
I have had a lousy experience with Countrywide and I an trying to find out who I contact about filing a lawsuit against them. I moved in my house Nov 28,2006. In May 2008 I sent my payment of $730 dollars. In June I sent in my payment and received a letter stating they do not take partial payments. I called Countrywide because that was my payment amount I sent in every month.They informed me they raised my payments to $1,000 a month, without explanation. I informed them I could not afford that amount. I have a daughter with a lot of health problems and there was no way a could make those payments. My mortgage payment was not suppose to go up until Jan 09 to $900 a month. they said they might be able to modify my loan. I waited and waited. I moved out the house in August. They kept telling me they had to wait until Dec 1st 08 to find out about the modification. I moved back into the house in Nov.08. I called them and they said they could modify my loan and that I should receive papers in the mail soon. I waited until Dec 12th and called. At this the lady on the phone said they sent my house into foreclosure
on Dec 5th without informing me. The house did not sell so she told me again they would modify my loan. A week later I received a letter in the mail stating that they were offering me $2000 dollars to be out by Jan 5, 2009. If I did not take the deal I would be evicted from the property on that day. What they are doing is wrong. They have screwed me right out of my house. I want to find a lawyer and sue them. They do not treat people fair at all. Can anybody e mail me or call me with information to help me.Please.
From Swansea, IL, 08/19/2008
Sililar situation but I managed to secure arenter to help off-set the payment but I couldn't maintain my payments. Now the renters are willing to buy the property and Countrywide is well aware of this, Countrywide has a copy of the new mortgage contract and now all of a sudden I'm getting slamed by Law firms trying to serve me. I just don't know what to do. Countrywide has been in the know of everything that has been going on. I just don't understand why they pursuing the foreclourse when they will get the the full amount of the loan and then some and even after they have ok'd a short sale.
From elgin, IL, 06/28/2008
Is there some one I can contact about the countrywide lawsuit ? Have relative that was burned by them
From Mesa, AZ, 06/26/2008
For a better understanding of how the sub-prime mortgage meltdown occurred check out This American Life's report at http://www.thisamericanlife.org/Radio_Episode.aspx?sched=1242.
Journalism at its best.
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