There was fraud in many home mortgages. We should see more of these cases but California is one of the few states where there have been prosecutions.

It is difficult to convince me that with Countrywide’s vast portfolio that this practice was uncommon. One of the best ways to defraud a homeowner is to sell him on the idea of cheap credit, lowering his monthly payments, knowing all along the loan will revert to a floating rate. That new interest rate produces a devastating increase in monthly payments forcing foreclosure. This is fraud. Conning people into home loans is what the great lecturers on personal responsibility claim was a rare event.

I don’t think so.

Here is one of my articles on this subject – Bank of America Sued Over Countrywide Mortgage Related Investments

James Pilant

California Attorney General Kamala Harris announced Friday that the $6.5 million settlement from two former Countrywide Financial Corp. executives will be used to establish a fund to help foreclosed homeowners. The settlement comes from a litigation that began more than two years ago against Angelo Mozilo and David Sambol. According to the lawsuit, Countrywide lured buyers with low teaser rates, sometimes as low as 1 percent, and failed to inform … Read More

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