Bankruptcy

US Trustee Sues Countrywide

By Bill McLeod, Esq.

The United States Trustee has filed suit in the US Bankruptcy Court in Atlanta seeking sanctions against Countrywide Home Loans. From the New York Times:

?Countrywide?s failure to ensure the accuracy of its pleadings and accounts in this case is not an isolated incident,? Donald F. Walton, the trustee for the Atlanta region, wrote in a brief. ?In recent years, Countrywide and its representatives have been sanctioned for filing inaccurate pleadings and other similar abuses within the bankruptcy system.?

In addition to a litany of other abuses, it is alleged that Countrywide accepted payments on a mortgage that had already been paid in full (the mortgage company had issued a "satisfaction of mortgage" acknowledgment).

I recall Countrywide commercials where some delightful spokesperson would proclaim: "Countrywide says YES!." According to a statement from Countrywide, they are not commenting on the pending litigation.

News of the suit is also reported in The Sydney Morning Herald.

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Full post as published by McLeod Law Offices on March 03, 2008 (boomark / email).