Bankruptcy

Countrywide Admits Bankruptcy Errors, Tells Senate It Is Making Changes To Avoid Similar Errors In The Future

By Scott Riddle

From CNNMoney.com

The Countrywide executive told a U.S. Senate Judiciary subcommittee that the company was taking new steps to address concerns that have led to an outcry from consumer advocates and that were the catalyst for Tuesday's hearing. Bailey said Countrywide plans to hire an independent auditor to review its treatment of loans whose borrowers have filed for bankruptcy. If Countrywide made mistakes that hurt borrowers, the company will compensate them, he said.

Countrywide also plans to create a bankruptcy ombudsman to review claims of borrower abuse, and adopt a series of "best practices" issued by a national group of bankruptcy trustees.

The article also discusses the adversary filed in the Northern District against Countrywide, discussed in this post:

The subcommittee was also scheduled to hear testimony from Robin Atchley, a mother of four from Georgia and a former Countrywide borrower. Atchley, in her testimony, told the panel that her and her husband were engaged in a "tug of war" with Countrywide and its lawyers to try and stay in their house.

"It seems as if Countrywide used the bankruptcy court to gain even more opportunities to take advantage of our predicament and to profit from our struggle," Atchley said, detailing various fees and charges the company assessed.

Is Bank of America still going to buy Countrywide?

Full post as published by Georgia Bankruptcy Blog on May 06, 2008 (boomark / email).