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COUNTRYWIDE BITES BACK!
Here's a question: Who is less sympathetic, Countrywide or trial attorneys?
As Diana Olick earlier reported, a law firm has filed a lawsuit on behalf of at least one investor who represents "a trust" which owns mortgages Countrywide wants to modify under an agreement with several states.
The plaintiff is seeking class action status. His beef: if Countrywide wants to modify bad loans, the mortgage giant (now owned by Bank of America [BAC
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Now Countrywide is threatening to sue back.
"We are disappointed in this attack on a program intended to keep as many as 400,000 at-risk families in their homes," the company says.
The company smells some funny business here — the pot calling the kettle black, some would say. Still, Countrywide says, "Loan modifications have been occurring for decades without objections or challenges, so we are especially troubled at the timing of this complaint."
Here's the threat:
"Countrywide believes that plaintiffs' lawsuit represents an unlawful effort...Countrywide intends to pursue plaintiffs for any and all remedies available to it, including the recovery of its costs incurred in having to defend this improper action."
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More Banks Feeling the Mortgage Pain:
Citigroup [C
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JPMorgan Chase [JPM
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Goldman Sachs [GS
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