Countrywide Financial Corp is being sued over $8.4 Billion Loan Deal

Greenwich Financial Service Fund sued Countrywide Financial Corp, the troubled home lender that Bank of America (NYSE:BAC) recently brought over claims an agreement to reduce payments on mortgages by $8.4 billion would hurt investors.

The fund said that 400,000 mortgages will decline under the deal, and that investors will be harmed by Bank of America’s settlement that was on behalf of Countrywide Financial Corp.

In the proposed group lawsuit the hedge fund demanded according to lawyer for the fund, a declaration that “Countrywide must purchase at par every mortgage loan that it sold to any of the 374 securitization trusts” its likely that Countrywide could owe the trust $80 billion.

Bank of America has made clear that loan modifications have been occurring for decades and without challenges or objections.

Read full report: Bloomberg