Countrywide Lawsuit

posted on:
April 3, 2008

author:
Staff

category:
Fraud

Our firm is currently handling claims against Countrywide Home Loans where individuals allege they were promised a lower or fixed interest rate but at the loan closing the rate was increased or a variable rate. In addition to increasing the monthly payments at the time of the loan closing, other fees, charges and closing costs were higher than what was initially quoted to the borrowers. It has been alleged that Countrywide reaped hundreds of millions of dollars in ill gotten gains as a result of hiring third parties to perform flood certifications, tax services and appraisals at set prices, then marking up the costs of those services on the HUD-1 and other closing documents.

Our firm is also handling claims against Countrywide in which we allege Countrywide schemed with real estate appraisers to inflate prices paid for homes. Prospective home buyers were presented with false or misleading data on previously sold homes in order to justify higher asking prices on new purchases. The comparable sales data was misrepresented or from homes that were dissimilar.

Countrywide’s lending practices have drawn consumer complaints and litigation amid a surge in home loan defaults. A former employee at Countrywide sued the company claiming he was wrongly fired after he criticized the firms lending practices. The lawsuit contends Countrywide fired him after he blew the whistle on fellow employees and outlined instances in which appraisers were being strongly encouraged to inflate homes’ appraised value.

What can I do?

If you or a loved one feel you may have been a victim of a fraudulent home loan, please contact us today for a free legal consultation.

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