Mortgage fraud lawsuit filed by Indiana against Countrywide for deceptive mortgage practices
The lenders are finally getting some heat for their role in the rampant mortgage fraud that has forced many Americans into foreclosure.
Indiana has joined a number of other states in suing Countrywide for deceptive and fraudulent lending practices relating to residential mortgages. Reuters has the story.
Several other states are already pursuing Countrywide, although Georgia is conspicuously absent from the list. The states that have sued are focusing on Countrywide's deceptive and misleading sales practices for residential mortgages. Among other things, the lawsuits allege that Countrywide brokers were knowingly completing false loan documentation to get borrowers approved for loans they simply could not afford.
It will be interesting to see what happens to Countrywide (now owned by Bank of America) as a result of these lawsuits. The State of Washington has already threatened to revoke their lending license.
Our firm has been involved in numerous Georgia mortgage fraud cases. We have seen lenders, brokers and investors push people into deals that were not fair and that they could not afford. Hopefully, these state lawsuits will provide some relief. If not, there is always the option of pursuing the lenders and brokers on an individual basis, if the facts show clear deception.
