Banking Law
San Diego Lawsuit Seeks to Stop Countrywide Foreclosures
Posted Jul 24, 2008, 05:26 am CST
By Debra Cassens Weiss
San Diego City Attorney Michael Aguirre has filed a lawsuit against Countrywide Financial Corp. that seeks to stop residential foreclosures that were the result of predatory lending practices.
Aguirre told the Daily Journal (sub. req.) that Buffalo, N.Y., Cleveland and Baltimore have filed similar suits. California’s attorney general has also sued Countrywide, but Aguirre said that suit is focused on stopping fraud and unfair lending practices, rather than halting foreclosures.
Aguirre’s suit claims Countrywide made loans based on the foreclosure value of a residence instead of the borrower’s ability to repay, encouraged serial refinancings to earn fees, and hid the true nature of mortgage obligations, the story says.