December 28, 2007

And then the f**ked borrowers started suing Countrywide Toxic Mortgage, and the lawyers got real excited


Countrywide, IndyMac, First Fed, WaMu, Wells Fargo and the rest of the toxic lenders who put people into teaser rates and option ARMs (to earn higher commission), and whose agents knowingly falsified loan applications and appraisals "to make the numbers work" (to earn higher commissions), will find out soon enough that there aren't enough lawyers in the land to handle the onslaught of lawsuits coming their way.

The 1980's had asbestos. The 1990's had tobacco. The 2000's will have housing.

Quick! Someone call John Edwards!

(note, I'm short WaMu and WFC)


Borrowers sue Countrywide Financial

Several people who took on home loans from Countrywide Financial Corp. are suing the company, claiming they and other borrowers were steered unnecessarily into taking on risky loans with built-in payment hikes, which ultimately led them to go bankrupt or lose their homes.

The seven plaintiffs filed an amended complaint Friday against the Calabasas-based company and several of its subsidiaries.

Among the allegations are claims that Countrywide tried to "induce as many borrowers as possible into expensive and dangerous subprime loans, because such loans are the most lucrative for Countrywide."

23 comments:

Nonanonymous said...

Yes, here we go. But wait, don't car dealers try to:

"induce as many borrowers as possible into expensive and dangerous (automobile) loans, because such loans are the most lucrative for" Ford/GM/Nissan - every hour of every day?

Greed is not illegal in a capitalist economy. Nor is stupidity. These idiots should be laughed out of court after paying the defendants' attorney fees.

Buyer signs a contract. Read it and understand it. Caveat Emptor.

Anonymous said...

John Edwards has killed more hospitals than any amount of illegal aliens.

Edwards is Amoral, period.

You are stupid if you believe his s*it.

Veronica Lodge said...

RE: And then the f**ked borrowers started suing Countrywide Toxic Mortgage, and the lawyers got real excited.

So what's next?

Are we going to see lawsuits brought against dope dealers, pimps and whores?

Oh, wait. That's exactly what's happening here.

V.L.

Ruprecht said...

72 year old retired welfare worker LIED on her Option ARM refi. Let the punishment be hard labor for 20 years. (sarcasm)

http://tinyurl.com/2kywzk


And let the broker who sold it be rewarded with a handsome end of year bonus;(sarcasm)

"Although a broker might earn $4,500 for selling a $300,000 fixed-rate loan, Diamond said, the commission could total $12,000 on an option ARM of the same size.

"These loans drove the whole industry from late 1999 through late 2006," Diamond said. "It was just about the only thing any broker wanted to sell."

Anonymous said...

There are a lot of Countrywide appologists. The industry made a lot of fraudulent statments associated with the loans. The consumer expected that the product would be explained to them because they are not experts. They were lied to. I mean major (OUTRAGEOUS) lies and ommissions.

That's why you went to countrywide or other lenders/brokers so they would explain the "paperwork" that the consumer has a tough time understanding. Of course if a agent/employee spend three to five minutes clearly explaining what the consumer was getting into they'd be fired that day or on the spot. I wonder why?

The average consumer out there is not smart enough(they are TOO STUPID) to do their own due dilligence and they are like lambs being led to the slaughter. I'm speaking from personal observation, I'm not trying to be insulting here. Oh and those phony income numbers and other false info on the loan applications -- what percentage where put there by the lender/broker hmmmm.

Lenders knowingly sold fraudulent loans to be securitized and sold to bagholders accross the globe. Oh they sold toxic mortgages rated triple AAA LOL. The Fed. Res., the Fed. Gov, Wall Street's culpibily is exponential. There strategy is to blame all on those dumb people who don't read or under stand the "paperwork." Shouldn't we let Tanman go off into the sunset in peace with his billions? After all a contract is a contract. Ha Ha!!

Anonymous said...

On one side of the table is the lender--sophisticated, cunning, greedy. On the other side of the table is the borrower--ignorant, emotional, pressed for time. Unless the borrower arms him/herself properly for this battle the result is known even before it begins. Caveat Emptor for sure!

Frank@Scottsdale-Sucks.com said...

Gotta stop saying they "earn" commissions. More like "get" ... that's the operative word of these people ... they want to "get" theirs without working for it or honestly earning it.

Anonymous said...

Everybody was kung fu fightin'!
Those cats were fast as light'nin!

Anonymous said...

the 1990s also had "super fund EPA toxic waste site cleanup" litigation that went on for years. I know several lawyers that did nothing but super fund litigation for most of the 90s.

brokersleaveyoubroke said...

I just read that 75% of the people who have option ARM's are only making the minimum payment. That means that the amount they owe is increasing while the value of their house is decreasing. Option ARM's were meant to allow you to make a smaller payment occasionally if money is tight. If you pay the minimum every month then the loan balance will reach a point where you will have to start making full payments plus principal on the higher balance. This can double or triple your monthly payment. 75% of ALL option ARM holders are generating negative equity which just compounds the problem of falling house prices. I think this will make the subprime problem look like a hiccup. These people are making the minimum because that's all they can afford.

Anonymous said...

Its predator versus predator: The lawyers against the Real Estate sales shills and their Mortage Broker pimps. I want the lawyers to hammer them on this one, and with a class action and the ongoing issue with jury trials on the collective mortgage and banking fraud this cage fight will be worth the price of admission.

Anonymous said...

HPers listen UP Just read on another blog: Maybe suing will help him feel better.

“Memo to everyone who didn’t buy a house in the last four years: Please stop talking about the housing crisis in front of those of us who did. We’re too busy to listen. We’re trying to figure out how we’re going to send our kids to school, or if we’re ever going to be able to retire.”

“And if you must talk about it, could you please at least pretend it doesn’t make you happy? Last weekend I was at a party, and a fellow guest spouted cheerfully: ‘Housing prices are going to crash, and all those rich jerks are going to be screwed.’”

“I’m certainly not rich. I’m probably not a jerk. If I am indeed screwed, I would prefer that whoever brings this to my attention does so with less obvious relish.”

adprod said...

Actually, greed might not be illegal, but consumer fraud is. People were intentionally put into subprime loans who qualified for PRIME loans by Countrywide if media reports are accurate. Borrowers were also steered into loans with steep prepayment penalties. Sorry, but these banks are going to get raped.

Anonymous said...

Like any mess a SUPERFUND will fix it!

Toxic materials - Toxic mortgages whats the difference?

Anonymous said...

CUNTrywide is a sleazy scumbag company. I had the extreme misfortune of having my loan sold to them. Every two weeks those assholes send me an offer to refi my fixed rate to an arm that will save me a whopping $753.00 per year. Ok they gave up on that one, now it's you can extract at least 176,000 equity from your home.

I've had mortgages since 1978, but I have never been spammed like this by my current mortgage holder, ever. I kind of expect the Ameriquest thieving liars but your own mortgage holder? Yea that's a new low in ethics. Those loans would obviously be detrimental to my fiscal wellbeing.

Frank@Scottsdale-Sucks.com said...

I hate to say it but I hope Countrywide wins or gets this dismissed.

I'm SICK AND TIRED of hearing these whiny, egotistical, self-centered, narcissistic a-holes who knowingly "bought" big houses they full well knew they didn't pay for, and now they're crying like little babies and claiming to be "victims."

Yeah, Countrywide and the Orange One may be scum, but so are you, FBs, and it's time to pay the piper. It's time to face reality, accept the fact that you lied on your application and knew what you were signing, and it's time to hand the house over in foreclosure.

You can't afford your payment? F*ck you. And read the contract next time.

Anonymous said...

Sweet!

Go trial lawyers!

Anonymous said...

John Edwards is a hero to the working man. How dare you insult him?

Long live communism.
Long live Democracts
Long live HP

Ed said...

Actually, greed might not be illegal, but consumer fraud is. People were intentionally put into subprime loans who qualified for PRIME loans by Countrywide if media reports are accurate. Borrowers were also steered into loans with steep prepayment penalties. Sorry, but these banks are going to get raped.

December 28, 2007 11:51 PM


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That's bullshit. Borrowers were "steered"? These were adults who made a stupid financial decision.

So I guess everyone who ever bought a car and paid $1 more than what the dealer would have sold for should sue. That's the argument against Countrywide isn't it. CW **COULD HAVE** issued a loan at a lower interest rate but instead issued it at a higher rate.

That's what companies - all companies in all industries - do. Maximize profits by selling at the highest price possible. Suppose I make a product that costs me $10. I can sell it to you for $15 and make a nice profit. If I sell it to you for $50, am I commiting fraud because you can't negotiate?

These lawsuits are going down a very slippery slope and I think they are very dangerous for anyone who owns a business.

Anonymous said...

What happenend to the Countrywide Insider Blog?

White Swan Event said...

That's bullshit. Borrowers were "steered"? These were adults who made a stupid financial decision.
_________________
El Wrong Oh.
An interest only loan was shoved down my throat for weeks by these guys, until I was RUDE and insisted that I wanted a 30 year fixed.
I basically yelled at the sales wesel, "What part of 30 year fixed-I do not want to re fi in 3 years do yo not understand!"
Wish I had listed to him.

Anonymous said...

This (picture) is a $400 haircut.

Edwards should get a refund.

He looks like a punk.

Anonymous said...

White Swan Event said...
That's bullshit. Borrowers were "steered"? These were adults who made a stupid financial decision.
_________________
El Wrong Oh.
An interest only loan was shoved down my throat for weeks by these guys, until I was RUDE and insisted that I wanted a 30 year fixed.
I basically yelled at the sales wesel, "What part of 30 year fixed-I do not want to re fi in 3 years do yo not understand!"
Wish I had listed to him.

December 29, 2007 11:18 PM


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You just dispproved your own argument. It was up to you to say no to ninja loans. You did, good for you. Many didn't, tough shit for them.