The United States Trustee has filed suit in the US Bankruptcy Court in Atlanta seeking sanctions against Countrywide Home Loans. From the New York Times:
“Countrywide’s failure to ensure the accuracy of its pleadings and accounts in this case is not an isolated incident,” Donald F. Walton, the trustee for the Atlanta region, wrote in a brief. “In recent years, Countrywide and its representatives have been sanctioned for filing inaccurate pleadings and other similar abuses within the bankruptcy system.”
In addition to a litany of other abuses, it is alleged that Countrywide accepted payments on a mortgage that had already been paid in full (the mortgage company had issued a “satisfaction of mortgage” acknowledgment).
I recall Countrywide commercials where some delightful spokesperson would proclaim: “Countrywide says YES!.” According to a statement from Countrywide, they are not commenting on the pending litigation.
News of the suit is also reported in The Sydney Morning Herald.
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