Current Issue
Add West Virginia to the growing list of states lining up to sue Countrywide Financial Corp. over alleged predatory lending practices. State Attorney General Darrell McGraw filed suit Tuesday against the nation’s largest lender and servicer, it’s former subsidiaries, and against former Countrywide CEO Angelo Mozilo. The Calabasas, Calif.-based lender was acquired on July 1 by Bank of America Corp. (BAC: 14.46 -0.14%).
Representatives for Bank of America have not commented on any of the pending litigation by state attorneys general thus far, with a spokesperson telling HW only that the North Carolina-based bank is committed to responsible lending practices and reiterating a commitment to work aggressively on loan modifications for troubled borrowers.
“Countrywide made loans to West Virginia consumers on terms that were unaffordable and unconscionable,” a press statement put out by McGraws office read. “These loans exposed consumers to foreclosure and loss of their homes. Countrywide also used unfair and deceptive acts or practices to make loans and service loans.”
“Foreclosures in a neighborhood affect the value of all homes in that neighborhood,” said McGraw. “Therefore, while the consumers facing foreclosure are directly affected by Countrywide’s practices, all homeowners are indirectly affected.”
California, Connecticut, Illinois, Florida and the city of San Diego have recently sued Countrywide, as well, under similar alleged predatory lending claims.
