Too much of a good thing

It's a good thing "No one can do what Countrywide can" or they'd be getting sued by California and Illinois, too!

Turns out they were deceptive to borrowers (allegedly, of course) about the risks of getting a subprime loan. That they encouraged "serial refinancing" (sounds like a horrific crime, not a lending practice!) and that they didn't tell their borrowers that their subprime payments would "explode" (their words, not mine...and they don't sound too ‘non-biased' to me)!

Apparently, they weren't just ‘misleading' the crappy credit borrowers, either! Turns out Countrywide is turning into the scapegoat for all things lending.

Certain states are even getting upset (read: pissed) with the option ARMS as well. You know these – the borrower has "such good credit" that the options exist each month on whether they want to pay interest only, principal only, P&I, or PITI (principal, interest, taxes, and insurance).

Just when I thought those two Bear Stearns employees were gonna have to take the rap for the Subprime meltown (they were indicted last week)...Countrywide steps in.

But at least there was a little planning on Countrywide's part! They've ok'd the takeover of their company by Bank of America (you know, the one that advertises "Higher Standards"). Turns out it was B of A that gave the founder of Countrywide the first $75k he needed to start the company back in 1969!

So now Congress has a new head to mount on their wall. Countrywide CEO Angelo Mozilo.

And the Attorney General for the state of California will ensure that "No one can do what Countrywide can".

Wonder who's next...


Your Real Estate Success Coach,

Jim Canale

Learn how you can use these stupid corporate events for your own family's good at one of my upcoming FREE Real Estate Lifestyle Training Events – Click Here

to register