LOS ANGELES (CN) – Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer’s role in the housing bubble and collapse. In a somewhat brazen complaint, Countrywide claims Triad “encouraged lenders to develop new and more risky mortgage products” before the worldwide financial crisis, and now wants to rescind coverage for many of Countrywide’s 60,000 outstanding mortgage loans, worth more than $9 billion.
Countrywide, which many view as the poster boy for the mortgage lending catastrophe, objects that …
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Oh, the irony! Imagine that! Countrywide/BofA getting exactly what they deserve.
Here CW/BofA are denying loan mods to thousands of struggling homeowners and now the insurance companies are denying them insurance coverage on many of the loans they probably refused to modify.
And if these lenders finally do get insurance companies to pay, are they going to allocate some of the money towards those very loans for which these policies were purchased? Do they get the insurance money and the homes too? How does this work? Once all the “parties of interest” have been paid and satisfied, who gets the surplus left over from insurance policies, bailout funds, etc?