Countrywide sued as homeowners conned into taking out risky loans

Bank of America’s (NYSE: BAC) Countrywide Financial have been sued by Connecticut after it has been said that the company pushed borrowers into taking risky loans that they could not afford, other states such as California, Illinois, and Florida have also all filed similar charges, and we suspect more will follow suit.

Attorney General Richard Blumenthal of Connecticut wants Countrywide to make changes to mortgages that violated state laws and make restitution to affected borrowers, Blumenthal is also seeking fines of $100,000 per violation of state banking laws, and up to $5,000 per violation of state consumer protection laws.

Blumethal said he will be looking into the investment side of the consumer fleecing as he has shed loads of documentation to aid him in the process, he is also concerned as to why the Bank of America is still keeping the Countrywide name? As we know it takes 20 years to build a good reputation and five minutes to ruin it. Let’s face it how many people will go and get a loan at countrywide after all the bad press and the fact the company is being sued left right and centre by states all over America.

The Brand is clearly negative at this point.

I wonder is the Bank of America will rebrand Countrywide in a year or so. What are your views on the countrywide fleecing?

Source: blogstock

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