The Florida attorney general on Monday filed a civil lawsuit against Countrywide Financial Corp. and its chief executive, Angelo Mozilo, alleging the company engaged in deceptive and unfair trade practices.From the Associated Press, via CNN:
The lawsuit, filed in state court in Broward County by Florida Attorney General Bill McCollum, alleges that Countrywide put borrowers into mortgages they couldn't afford or loans with rates and penalties that were misleading. It seeks civil penalties and damages.
Florida's action follows similar lawsuits filed last week by attorneys general in California and Illinois. Mr. McCollum said that his state has had a continuing investigation of Countrywide and "we thought it was important for us to do this right now."
Bank of America Corp. completed its purchase of Countrywide Financial Corp. Tuesday, making the Charlotte, N.C.-based bank the nation's leading mortgage originator and servicer.Is it really a good idea to control 20-25% of the nation's home-loan market during this housing bust?
The Federal Reserve and Countrywide's shareholders cleared the way for the acquisition last month. As of Tuesday's close, Bank of America controls between 20% and 25% of the country's home-loan market.