Homeowners Sue Countrywide!

Who isn’t suing Countrywide lately? Phuong Cat Le from the Seattle Post-Intelligencer says that a group of homeowners are now suing Countrywide, alleging that the lender steered them toward high-risk loans without disclosing the inherent risks.

From the P-I:

They allege in the complaint that the lender misrepresented the terms of ARMs (adjustable-rate mortgages), marketed risky complex loans by emphasizing low teaser rates while misrepresenting later steep monthly payments and routinely encouraged borrowers to refinance only months after an affiliated broker sold them a loan.

The plaintiffs in this case include June Taylor, a Renton resident, who refinanced a home loan with Countrywide in 2006. She didn’t receive a good faith estimate or a truth-in-lending statement before she closed on the loan — both required by law, according to the complaint. In addition, her truth-in-lending statement listed her monthly payments, but failed to note that it represented only the minimum payment that Countrywide was willing to accept rather than the actual amount she owed. Thus, she ended up with a loan that actually grew over time, the suit alleges.

Oh June, who doesn’t want a mortgage that grows over time? You’re just not looking at the bright side of things. Like… um… never mind. Nobody wants a growing mortgage. Good luck with your lawsuit.

Homeowners sue Countrywide [P-I]
(Photo: So Cal Metro )