California Lawsuit Against Countrywide Financial Broadened

The Countrywide Financial headquarters is seen on July 18, 2008 in Calabasas, California. State officials have expanded allegations made in a suit filed by California Atty. Gen. Jerry Brown against Countrywide and several of its top executives to charge that the mortgage lender rewarded staff with higher commissions for putting borrowers with poor credit scores into some of the riskiest of loans, such as adjustable-rate mortgages with very low initial "teaser" rates that would balloon over time. The expanded allegations also state that Countrywide agents regularly disregarded warnings from the company's computerized underwriting system which analyzes the ability of applicants to repay their loans. In one of the example offered by the suit, Countrywide approved a mortgage for an 85-year-old disabled veteran with a low credit score and too much debt to qualify for the loan which went into default within six months.
The Countrywide Financial headquarters is seen on July 18, 2008 in Calabasas, California. State officials have expanded allegations made in a suit filed by California Atty. Gen. Jerry Brown against Countrywide and several of its top executives to charge that the mortgage lender rewarded staff with higher commissions for putting borrowers with poor credit scores into some of the riskiest of loans, such as adjustable-rate mortgages with very low initial "teaser" rates that would balloon over time. The expanded allegations also state that Countrywide agents regularly disregarded warnings from the company's computerized underwriting system which analyzes the ability of applicants to repay their loans. In one of the example offered by the suit, Countrywide approved a mortgage for an 85-year-old disabled veteran with a low credit score and too much debt to qualify for the loan which went into default within six months.
(Photo by David McNew/Getty Images North America)
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The Countrywide Financial headquarters is seen on July 18, 2008 in Calabasas, California. State officials have expanded allegations made in a suit filed by California Atty. Gen. Jerry Brown against Countrywide and several of its top executives to charge that the mortgage lender rewarded staff with higher commissions for putting borrowers with poor credit scores into some of the riskiest of loans, such as adjustable-rate mortgages with very low initial "teaser" rates that would balloon over time. The expanded allegations also state that Countrywide agents regularly disregarded warnings from the company's computerized underwriting system which analyzes the ability of applicants to repay their loans. In one of the example offered by the suit, Countrywide approved a mortgage for an 85-year-old disabled veteran with a low credit score and too much debt to qualify for the loan which went into default within six months. The Countrywide Financial headquarters is seen on July 18, 2008 in Calabasas, California. State officials have expanded allegations made in a suit filed by California Atty. Gen. Jerry Brown against Countrywide and several of its top executives to charge that the mortgage lender rewarded staff with higher commissions for putting borrowers with poor credit scores into some of the riskiest of loans, such as adjustable-rate mortgages with very low initial "teaser" rates that would balloon over time. The expanded allegations also state that Countrywide agents regularly disregarded warnings from the company's computerized underwriting system which analyzes the ability of applicants to repay their loans. In one of the example offered by the suit, Countrywide approved a mortgage for an 85-year-old disabled veteran with a low credit score and too much debt to qualify for the loan which went into default within six months. The Countrywide Financial headquarters is seen on July 18, 2008 in Calabasas, California. State officials have expanded allegations made in a suit filed by California Atty. Gen. Jerry Brown against Countrywide and several of its top executives to charge that the mortgage lender rewarded staff with higher commissions for putting borrowers with poor credit scores into some of the riskiest of loans, such as adjustable-rate mortgages with very low initial "teaser" rates that would balloon over time. The expanded allegations also state that Countrywide agents regularly disregarded warnings from the company's computerized underwriting system which analyzes the ability of applicants to repay their loans. In one of the example offered by the suit, Countrywide approved a mortgage for an 85-year-old disabled veteran with a low credit score and too much debt to qualify for the loan which went into default within six months. The Countrywide Financial headquarters is seen on July 18, 2008 in Calabasas, California. State officials have expanded allegations made in a suit filed by California Atty. Gen. Jerry Brown against Countrywide and several of its top executives to charge that the mortgage lender rewarded staff with higher commissions for putting borrowers with poor credit scores into some of the riskiest of loans, such as adjustable-rate mortgages with very low initial "teaser" rates that would balloon over time. The expanded allegations also state that Countrywide agents regularly disregarded warnings from the company's computerized underwriting system which analyzes the ability of applicants to repay their loans. In one of the example offered by the suit, Countrywide approved a mortgage for an 85-year-old disabled veteran with a low credit score and too much debt to qualify for the loan which went into default within six months.
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