Carter sues Countrywide Mortgage Lending Agency Save Email Print
South Bend
Posted: 3:17 PM Aug 25, 2008
Last Updated: 3:17 PM Aug 25, 2008

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It's one of the biggest decisions you can make: buying a home.

But how can you be sure you're getting a good deal on your mortgage?

Today, the Indiana Attorney General's office joined the fight to make one lender more accountable.

Countrywide is a national lending agency accused of several violations, including altering incomes and raising fixed mortgage rates without a customer's knowledge.

Attorney General Steve Carter says even a slight increase can impact a family’s budget. "That's pretty dramatic,” he says. “If people haven't calculated that increase, and when you're talking about it leaping up four or five percentage points, that's going to have a huge impact on a family's budget."

Carter says Countrywide is also accused of raising the salaries of its customers. "That gets somebody into a larger mortgage, but ultimately they're going to have trouble paying that loan based on their true level of income," he says.

Indiana and four other states are suing countrywide for more than $15,000 per case.

Carter says it's important to know as much about your mortgage lender as possible.

For more information, including helpful tips for homebuyers, click on the Big Red Bar on the left side of the page. There, you’ll find a link to the Attorney General’s office.

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Posted by: H on Aug 26, 2008 at 07:18 PM
How exactly were people taken advantage of? I am pretty sure people are well aware of their earnings and if their earnings do not correspond with the price of the home...YOU CANNOT AFFORD IT!!! If lenders are fudging your income on the loan app, wouldn't you think that was a sign that it might be out of your price range?

Posted by: Melissa Location: Mishawaka on Aug 26, 2008 at 03:45 PM
That is some scary stuff. My husband and I just bought our first home. And when we first started looking for mortgage companies my boss told me I should go to Country Wide. Now I'm glad I didn't listen. But this is definitely no laughing matter. Who do they think they are to mess with peoples money like that?!

Posted by: db on Aug 26, 2008 at 10:24 AM
Countrywide Customer, it is common for mortgage loans to be transferred. This does not affect anything other than where you make your payment. You should have received documents from your lender as part of your application that would disclose the possibility of transfer and the lenders prior years history of the volume of loans transferred. It is regulated that these documents are provided or the lender is out of compliance.

Posted by: John on Aug 26, 2008 at 09:33 AM
My guess is the homeowner also knew the income was being increased but, didn't care cause they wanted that house.

Posted by: TS on Aug 26, 2008 at 09:08 AM
i have had 2 mtgs with countrywide and never had any problems. i guess maybe i was one of the smart ones and looked at the total picture and saw that it made sense. personally i think people got in way over their heads to begin with and it got alot worse. now carter is trying to blame everyone else for the problems of the homeowner.

Posted by: Anonymous on Aug 26, 2008 at 08:50 AM
Who will get the $15,000 per case if Indiana and the four other states will the lawsuit? Will it be the people who were taken advantage of? I doubt it... Also it would be a good idea to read over all paperwork before you sign anything. If it is your first time signing for a mortgage than take someone with you that had or has a mortgage, it may save you in the long run.

Posted by: Countrywide Customer on Aug 26, 2008 at 07:50 AM
So, how is this going to help us, the Countrywide customers? We applied for & were approved for a loan with Key Bank. We were not told UNTIL CLOSING that our loan was transferred to Countrywide! If that isn't deception, I don't know what is. What recourse do we have?

Posted by: Renee Location: Mishawaka on Aug 26, 2008 at 07:08 AM
It is more than just knowing about your mortgage lender, you need to know what type of loan you are getting. A home buyer needs to do research and learn before buying a home.

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