Filed under: Deals, Law, Bank of America (BAC), Countrywide Financial (CFC), Housing
The troubles never ends for Countrywide (NYSE:CFC), but that may be its own fault. According to The Wall Street Journal: “A federal judge has authorized an in-depth probe of Countrywide Financial Corp.’s mortgage-processing systems by bankruptcy investigators hunting for evidence that the huge mortgage lender has systematically abused borrowers.”
Who knows? Maybe Bank of America (NYSE:BAC) will still walk away from its deal to purchase the mortgage company.
Among the charges is that Countrywide got people into mortgages and pumped up fees as customers made payments late. The court is concerned that the “fees” were no accident.
Similar charges keep jumping up as the world learns more about how Countrywide was run. As the old saying goes, where there’s smoke there’s fire. The number and depth of concerns about how the company made loans and handled customers appears to increase by the day.
The top executives at CFC are getting rich packages as the buyout by Bank of America continues. But, even the bank only has so much patience if the legal bills keep piling up.
Douglas A. McIntyre is an editor at 247wallst.com.
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