Unfortunately one of these articles is real, and it is the first one. As this one combines finger pointing, shirking responsibility and involving lawyers it's stupidity factor is off the charts.
California, Illinois File Lawsuits Over Countrywide's Practices
By RUTH SIMON
June 25, 2008 12:25 p.m.
California's attorney general has filed a civil lawsuit alleging that Countrywide Financial Corp. engaged in deceptive advertising and unfair competition by pushing borrowers into risky loans. The 46-page complaint also names Countrywide chairman Angelo Mozilo and the company's president David Sambol.
"Countrywide exploited the American dream of homeownership and then sold its mortgages for huge profits on the secondary market," California attorney general Edmund G. Brown said in a statement.
The lawsuit alleges that Countrywide "viewed borrowers as nothing more than the means for producing more loans" and originated loans "with little or no regard to borrowers' long-term ability to afford them and to sustain homeownership." These practices "were created and maintained with the knowledge, approval and ratification of" Mr. Mozilo and Mr. Sambol, it alleges.
The Illinois attorney general's office, which began an investigation into the business practices of Countrywide last fall, also filed a civil suit against Countrywide and Mr. Mozilo on Wednesday. In a draft of the Illinois complaint obtained Tuesday, the state alleges that Countrywide engaged in "unfair and deceptive practices" in the sale of mortgage loans. The 78-page document says the company loosened its underwriting standards, structured loans with "risky features" and engaged in "marketing and sales techniques" that incentivized employees and mortgage brokers to push loans whether or not homeowners had the ability to repay them.
Illinois Attorney General Lisa Madigan says she is asking that all Countrywide loans originated using "unfair and deceptive" practices be rescinded or modified in some way, even if Countrywide has to repurchase the loans. She is also asking that her office be given 90 days to review any loans that are currently in foreclosure or that are moving toward foreclosure.
The suits came as Countrywide shareholders approved Wednesday the company's takeover by Bank of America.
Write to Ruth Simon at ruth.simon@wsj.com
July 1st, 2008
California's attorney general has filed a civil lawsuit alleging that thousands of residents conspired to accept mortgage loans that were unaffordable and of questionable value to those who ultimately assumed ownership of them as part of Collateralized Debt Securities. The 150 page complaint lists numerous defendants throughout the state and investigators are close to proving collusion, the attorney general’s office said.
“The three or four hundred hard working residents of this state are embarrassed by the stupidity of some of our residents. We believe that the massive scope of this operation indicated collusion on the part of stupid people in this state and across America,” Edmund Brown said in a statement.
“The Attorney General has had it,” said Michael Westfield, a low lever staffer who spoke on condition of anonymity. “We think that these stupid people got together and planned out how to do this to Wall Street. It appears to us that many of them met at Wal Mart and they may have exchanged secret messages during television shows such as The View and Dancing With the Stars. It was a widespread conspiracy and though these people are stupid, they appear very organized.”
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