Countrywide is Just Part of the Mortgage Problem...
Attorney General Jerry Brown recently announced that the State of California has filed a legal suit against Countrywide home mortgage lender for deceptive lending practices that has caused thousands of foreclosures. Brown cites that Countrywide routinely failed to explain complicated and expensive mortgage terms to consumers -- a practice that encouraged borrowers to agree to completely unaffordable mortgage terms.
But according to several lending professionals working in California State (who requested that their anonymity be protected for this blog post), Countrywide’s failure to protect their clients from the possibility of foreclosure is just a small part of a much larger state-wide problem.
As one real estate professional explained, essentially, the real estate policies of California State do not protect mortgage consumers from an industry that thrives on the commissions and fees of realtors, mortgage professionals, bank lenders, and escrow companies.