MBS Investors Sue Countrywide for $80 Billion
A class action filed today seeks to force Countrywide Financial Corp. to repurchase as much as $80 billion in securitized mortgages that it plans to modify. But Countrywide's parent company claims that investors will be better off after the modifications.
The suit was filed in New York's state supreme court on behalf of investors of mortgage-backed securities issued by the Bank of America Corp. subsidiary, according to a statement from the plaintiffs' attorney, David J. Grais of Grais & Ellsworth LLP.
The case revolves around the $8.4 billion predatory lending settlement with several states announced in October by BoA.
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Investor Law Firm Challenges Modifications
Bank of America Corp. is passing the expense of its recent $8.4 billion settlement on to investors of residential mortgage-backed securities -- a violation of the securitization agreements, according to a New York law firm.
Income Not a Factor in Subprime Foreclosures
A new report found that income is not a factor in subprime foreclosures. It also found the most subprime mortgages were made outside of poverty-stricken areas.
Suit Against WaMu Seeks Foreclosure Moratorium
The City of San Diego has sued Washington Mutual Inc. in an attempt to halt foreclosures by the former lending giant. The case, which accuses the thrift of mortgage fraud and predatory lending, is the second recent lawsuit filed by the city against a major lender just after it was acquired by a major bank.
Mother of All Settlements
Bank of America Corp. will spend mortgage than $8 billion to settle charges of predatory lending at Countrywide Financial Corp.
Lenders Sued Over Reverse Redlining
A Texas woman has filed a lawsuit against a mortgage broker and loan servicer claiming she was targeted for nearly 10 percent in fees because she is black. She seeks to have the mortgage invalidated and her fees refunded.
Majority of Subprime Borrowers Single
The majority of subprime borrowers in 2006 were not minorities, according to a new report. But nearly two-thirds were single.
California Expands Lawsuit Against Countrywide
The state of California claims it has uncovered "shocking new details" about how Countrywide Financial Corp. disregarded prudent underwriting and deceived borrowers.
Wholesaler Fined $1 Million Over Broker Fees
Capital One Financial Corp.'s defunct wholesale lending subsidiary has paid $1 million to New York to settle allegations that minority borrowers paid higher fees than non-minorities. The state is now targeting the mortgage brokers who originated the loans.
2 States Sue Countrywide
As Countrywide Financial Corp. shareholders voted on whether to approved Bank of America Corp.'s proposed acquisition of the company, attorneys general in California and Illinois sued the lender. Meanwhile, Washington's governor also announced actions against the lender.
Mass. AG Sues Option One
The state of Massachusetts is suing defunct Option One Mortgage Corp. and its parent over allegations it placed minority borrowers in high-cost loans and contributed to the state's foreclosure crisis. The company was criticized for encouraging networking among minority groups, paying yield-spread premiums and paying volume bonuses.
