Never has there been a time in our history where our freedom has bee over shadowed by our burdens of debt and war, as it is now.  The time has come to unite in the streets of America as people, families and communities who must stick together, stand tall and keep fighting for what the fathers of our country did over 200 years ago.

Equality, justice, and freedom for ALL!

Many Americans are far from free in the sense of their every day realities. Yes, free to pursue their dreams and to think. But how can someone pursue their dreams or think clearly, when they are living a daily nightmare? Trying to figure out if their kids and loved ones will have a home next month? Where are they going to live next? What school will their children attend? Will they lose their security clearances or jobs?

We are shackled by debt in our homes that are supposed to be our American Dream.

Our mighty government sold this to its people as the American Dream and then it was packaged by banks and then mass produced by Wall Street. Not for the purpose of facilitating our dreams. But for the sole purpose of profiting off of them and then binding us in unconscionable contracts secured by snake oil and fools gold.

We MUST, as American citizens, unite and put a stop to these corporations, banks and world leaders who have their best interests at heart and not the peoples.

As Thomas Jefferson said some 200 years ago (some of my favorite quotes):

I hope we shall crush in its birth the aristocracy of our momied corporations which dare already to challenge our government to a trial by strength, and bid defiance to the laws of our country.
Thomas Jefferson

I know of no safe depository of the ultimate powers of the society but the people themselves; and if we think them not enlightened enough to exercise their control with a wholesome discretion, the remedy is not to take it from them but to inform their discretion.
Thomas Jefferson

I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.
Thomas Jefferson

I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.
Thomas Jefferson

If the present Congress errs in too much talking, how can it be otherwise in a body to which the people send one hundred and fifty lawyers, whose trade it is to question everything, yield nothing, and talk by the hour?
Thomas Jefferson

The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government.
Thomas Jefferson

The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.
Thomas Jefferson

Now, it appears that the Illinois attorney general feels that it is a great idea to have your current mortgage examined for federal, state and mortgage fraud violations. Otherwise known as “predatory lending.”

The Naperville Sun:

The Illinois attorney general’s office is encouraging homeowners with a Countrywide Financial Corp. loan to seek professional help if they’re questioning the terms of their loan.

Illinois Attorney General Lisa Madigan this week filed a lawsuit in Cook County Circuit Court against the nation’s largest mortgage lender and servicer, claiming the company used deceptive practices to lure borrowers into unaffordable loans.

In Cook County alone, about 2,534 home loans originated by Countrywide have been foreclosed on from January 2004 to this month, according to the complaint.

Maybe I should give Madigan a call today and let her know that we are finding violations on 85% of Countrywide Home Loans and that 90% of the loans we audit, the borrower has no clue that they have been victimized. Now, those are some alarming numbers that CANNOT be ignored.

More from the SUN:

A spokesman with Madigan’s office said Thursday that consumers with a 30-year fixed mortgage should not be alarmed, but carefully reviewing all documents of the loan is recommended.

“Make sure you actually have that fixed mortgage,” spokesman Natalie Bauer said.

The attorney general’s office suggests homeowners with a subprime mortgage should contact a certified counselor approved by the U.S Department of Housing and Urban Development.

I wrote about this in November of 2007:

The perfect crime is being perpetuated across America and there seems to be no laws or any way to prevent it. 

A new scam has been born with the advent of foreclosure boom. Predatory Renting

“This is an explosion,” said Judith Liben, a lawyer at the Massachusetts Law Reform Institute. “This isn’t business as usual. These are investors that overleveraged themselves, and the renters are collateral damage in the mortgage crisis.” Real estate flippers and investors are apparently renting their homes, not paying their mortgage and skipping out of town with their renters cash and security deposits. Leaving unsuspecting tenants to suffer and be kicked out on the street, often with only 72 hours to vacate and move their belongings. 

Many renters say they never even knew their buildings were heading for foreclosure.

This is an epidemic that is hitting almost ever city in the country and it is only getting worse by the foreclosure second.

Take a look at this new study about the New York housing market.

Nearly 60% of the 15,000 foreclosure filings in New York City in 2007 were on 2 to 4 family or multi-family buildings, leaving a significant number of renters threatened by foreclosure. A conservative estimate puts the number of renter households impacted at about 15,000.

A new analysis by NYU’s Furman Center for Real Estate and Urban Policy finds that a majority of the nearly 15,000 mortgage-related foreclosure filings in New York City in 2007 were on multi-family buildings, and only about 40% were on condominiums or single-family homes.

The analysis shows that over 30,000 households (or about 76,000 New Yorkers) are living in properties that entered the foreclosure process in 2007. The Center estimates that more than 15,000 of these households (or some 38,000 New Yorkers) were living in rental units. This is a conservative estimate, because the analysis assumes that an owner lives in one of the units in all 2-4 family buildings, but in all likelihood, some of those buildings are completely occupied by renters.

More from November 2007 and here we are 8 months later:

In Nevada, which has one of the highest foreclosure rates in the country, 28 percent of mortgages that were in default earlier this year were for homes not owner-occupied, more than twice the national average, according to the Mortgage Bankers Association. Arizona and Florida, both leaders in foreclosures, are also well above the national average. In California, 22 percent of the properties lost to foreclosure this year were not owner-occupied, according to ForeclosureRadar.com, which tracks California foreclosure auctions.

Foreclosing lenders typically evict tenants so they can sell the property, said Vicki Vidal, senior director of loan administration and government affairs at the Mortgage Bankers Association.

Legislation that would reform the foreclosure process in California for the benefit of homeowners trying to hold on to their homes passed the Assembly today on a 55 to 18 vote, just one vote above the two-thirds majority it required. Ten Republican Assemblymembers joined 45 of the 48 Democrats in voting for the bill, while all 18 votes against it came from Republicans.

The bill that passed, SB 1137 is authored by Democratic Senators Don Perata, Ellen Corbett, and Michael Machado, and coauthored by Speaker of the Assembly Karen Bass and principal coauthor Assemblymember Ted Lieu, who presented it on the Assembly floor. It goes beyond federal laws and received broad support from consumer groups. The legislation requires lenders and servicers to: 1) contact borrowers (or engage in a prescribed process to do so) to schedule telephone or in-person meetings on restructuring options before beginning the foreclosure process, 2) requires a 60-day notice to be given to tenants of buildings facing foreclosure before they can be removed from a rental housing unit; and 3) allows fines of up to $1,000 a day for owners of foreclosed properties that fail to adequately maintain them.

“Foreclosures are afflicting thousands of Californians and their communities,” Perata said. “SB 1137 gives homeowners more advanced warning a foreclosure may be coming and provides the tools they need to help avoid it.”

Read more from Frank Russo and the California Progress Report

Plaintiffs also identified “numerous red flags” that would have warned directors of increasingly risky loans made by Countrywide, according to the judge, who rejected a motion to dismiss the suit. “It defies reason, given the entirety of the allegations,” Judge Pfaelzer wrote, “that these committee members could be blind to widespread deviations from the underwriting policies and standards being committed by employees at all levels. At the same time, it does not appear that the committees took corrective action.”

Read more from Gretchen Morgenson and the NY Times

Apparently the Federal Reserve has been inundated with over 8,200 consumer complaints against various banking and lending institutions for credit card abuse and predatory lending. The Fed’s inbox has been full since it invited personal comments regarding a proposed new rule to end “Unfair or Deceptive Acts or Practices.” Sarah Byrnes said, Campaign Manager of Americans for Fairness in Lending (AFFIL)

Here are some of the complaints from Federal Reserves Freedom of Imformation Office:

“I get a form letter from Bank of America that says my interest rate is going to be raised from 7.9% to 21.99%. Why? Because I have a large balance that I haven’t paid off and I carry balances on a few other cards. Never mind that I’m not late, overlimit or anything else that would be a problem.” — Angela, Louisville, Kentucky

“The worst is Bank of America….The worst experience with this card was when I received my statement the other day. There was a $39 late fee on it. I knew that I paid on time and when I called the rep stated that I ‘paid too early’ so that it was applied to my previous billing cycle. Therefore, it was if I hadn’t made any payment in [the] current billing cycle. I have never heard of such a thing, being penalized for paying too soon.” — Eileen, Farmingdale, New York

“My husband and I recently experienced Bank of America raising our interest rate on our credit card from 13% to over 24%. The reason they sited [sic] was because they ‘re-evaluated’ our credit history…. Thankfully we continue to pay all our bills on time but these actions are predatory as I feel like they are in a dark corner just waiting to pounce.” — Jennifer, Fort Meyers, Florida

“Back when the President signed the new bankruptcy law, all my credit cards doubled the minimum payment and at least doubled my interest rates. What was a $100 minimum payment with a 9.99% interest rate went to $200 a month at 28%. I had to open more cards to transfer balances to help pay the other cards. Now I have to file for bankruptcy.” — Tim, Troy, Ohio

From the AAFIL:

“Americans are telling the Federal Reserve Board in no uncertain terms that they have had enough of these tricks and traps. Consumers are demanding strong federal regulations to ban the most egregious credit card practices—doubling and tripling interest rates, applying these higher interest rates retroactively to outstanding balances, imposing exorbitant penalty fees, and requiring binding mandatory arbitration clauses. But many wonder whether the Fed will listen to banks more than consumers and come down on the side of ‘business as usual.’ There’s no doubt that the banks are pressuring the Fed to tone down the proposed changes.

“Our government protects us from unsafe foods and drugs. Shouldn’t we demand reasonable protection against dangerous lending practices that deplete and destroy assets? We believe that consumer voices are what’s missing in the dialogue between banks and the Federal Reserve Board. That’s why AFFIL is helping consumers to contact the Fed during this period through its website http://www.affil.org. The Fed’s invitation for comments remains open through August 4, 2008.”

More information from the Federal Reserve:

Regulation AA - Unfair or Deceptive Acts or Practices [R-1314 ]

Interagency proposed rule prohibiting institutions from engaging in certain acts or practices in connection with consumer credit card accounts and overdraft services for deposit accounts
  

 

 

The case began like hundreds of others filed since the U.S. housing boom spawned a rise in sales of adjustable rate loans. Susan and Bryan Andrews of Cedarburg, Wisconsin, claimed that lender Chevy Chase Bank FSB (CCX_pc.N: Quote, Profile, Research) had hidden the true terms of what they believed was a good deal on a low-interest loan.

In their 2005 lawsuit, the couple said the loan’s interest rate had more than doubled by their second monthly payment from the 1.95 percent rate they thought was locked in for five years. The interest rate rose well above the 5.75 percent fixed-rate loan they had refinanced to pay their children’s college tuition.

The Andrews filed the case seeking class action status; and in early 2007, U.S. District Judge Lynn Adelman ruled that the bank had violated the Truth in Lending Act, or TILA, and that thousands of other Chevy Chase borrowers could join them as plaintiffs.

The judge transformed the case from a run-of-the-mill class action to a potential nightmare for the U.S. banking industry by also finding that the borrowers could force the bank to cancel, or rescind, their loans. That decision was stayed pending an appeal to the 7th U.S. Circuit Court of Appeals, which is expected to rule any day.

The idea of canceling tainted loans to stem a tide of foreclosures has caught hold in other quarters; a lawsuit filed last week by the Illinois attorney general asks a court to rescind or reform Countrywide Financial Corp (CFC.N: Quote, Profile, Research) mortgages originated under “unfair or deceptive practices.”

Read more from Reuters

I know sex sells, but does sex save homes? Only in America folks……..

From LA Land:

From a media alert forwarded to me by a colleague:

What: Hollywood actresses in bathing suits will be protesting to save foreclosure victims in front of the Bank of America building in Hollywood.  The Hollywood actresses will be supporting homeowners who are metaphorically losing their shirts because of bad loans. The protest will take place before the 4th of July to emphasize the idea of the American Dream that was lost because of bad home loans.

Who: Hollywood actresses from film and television and Forbes contributor and financial expert Robert Maltbie.

When: Thursday, July 3rd at 10 a.m.

Where: Bank of America
             6300 West Sunset
             Los Angeles, CA 90028

The media advisory further states that the Internet show “Hollywood by the Numbers” (surely you’ve heard of it) will be launching its newest video called “Subprime Slime,” in hopes of raising money “to  benefit foreclosure victims.”

I spoke briefly with the PR person for this event, Lorena Meza, who assured me, “This is a real event.” She was giggling a bit, though. I asked if I’d be correct in assuming the various actresses are, for lack of a better way of saying it, unknown. “I think one of them was in Terminator 2,” she replied. “But they’re not ‘A’ or ‘B’ list. They might be, like, ‘D’ list.”

Just last week attorney generals in Illinois and California filed predatory lending lawsuits accusing Countrywide of unfair and deceptive business practices. Now, Florida has jumped on the predatory lending lawsuit bang wagon with a similar lawsuit filed Monday.

My guess is that this will be a emerging trend with state AG’s across the US and soon we will have city attorneys following suit.

Wall Street Journal:

The Florida attorney general on Monday filed a civil lawsuit against Countrywide Financial Corp. and its chief executive, Angelo Mozilo, alleging the company engaged in deceptive and unfair trade practices.

The lawsuit, filed in state court in Broward County by Florida Attorney General Bill McCollum, alleges that Countrywide put borrowers into mortgages they couldn’t afford or loans with rates and penalties that were misleading. It seeks civil penalties and damages.

Florida’s action follows similar lawsuits filed last week by attorneys general in California and Illinois. Mr. McCollum said that his state has had a continuing investigation of Countrywide and “we thought it was important for us to do this right now.”

A Countrywide spokesman declined to comment on the specifics of the suit but said the company is “fully cooperating” with the Florida attorney general’s office and is “particularly focused” on working with customers who are having difficulty making payments.

Read more from the WSJ

“It’s a lot to ask Bank of America shareholders to stomach,” said Mike Larson, a real estate analyst at Weiss Research in Jupiter, Fla.

Countrywide is not only one of the biggest lenders in California and Florida, states that have been hit hard by the housing crisis, he said, it also has a large portfolio of home equity lines of credit and an especially risky type of adjustable-rate mortgage known as the option ARM. “It shows that the company is vulnerable to many geographies and loan types that are showing the worst performance,” Mr. Larson said. “It raises a real question about the logic of the deal or the deal at current terms.”

Read the rest of the New York Times story here

Some would call him the black sheep. I like to call him the tan sheep.

Wall Street Journal:

Countrywide’s reaction to the crisis was to push for more market share in the first half of 2007, aiming to benefit from the collapse of rivals. That backfired when Countrywide could no longer find buyers for many of the loans it had originated, leaving the company stuck with billions of dollars of high-risk mortgages. Former executives say Countrywide, which still accounts for about one in every seven home loans made in the U.S., was so focused on increasing volume that it neglected quality control.

Mr. Mozilo made things worse for himself by postponing his retirement and by making frequent, heavy sales of Countrywide stock. He offered discounts on loans to friends so frequently that FOA — for Friends of Angelo — became a familiar loan type among employees. He was quick to dismiss criticism from analysts and shareholders.

Mafia boss, I mean Countrywide CEO, Angelo Mozilo knew exactly what he was doing the whole time folks. This was all part of the master plan to rule the lending land. I liken Mozoilo to a gang leader that led his “lending gang” across the country and disregarded regulation and laws as he continued his quest to rule the streets.

His desire to be #1 at ALL costs may be the straw that broke Mozilo’s back.

WSJ:

When asked last year about proposals to give shareholders a nonbinding vote on compensation, he said: “The shareholders have no clue” how much Countrywide needed to pay to attract talent.

When an analyst fretted in 2004 about Mr. Mozilo’s sales of Countrywide stock, he snapped that those who had construed his share sales as bearish were “losers.” Mr. Mozilo stepped up those sales in late 2006 and unloaded more than $130 million of stock in the first half of 2007. That undermined confidence in the company, demoralized some of his own employees and drew a continuing investigation by the Securities and Exchange Commission. He also faces a rash of lawsuits from investors, borrowers and state regulators.

Mr. Mozilo has said his stock sales were lawful and defended his right to dispose of what he regards as well-earned compensation. The problem in America, he said in an interview last year, is that “people are reviled if they make what people think is too much.” In Mr. Mozilo’s view, “if anybody makes a billion dollars, that’s America. That’s terrific!”

Can anyone say, “Unfair and Deceptive?”

That is exactly how Angelo Mozilo ran Countrywide Financial and Countrywide Home Loans. He was unfair and deceptive to EVERYONE involved in his business. From Countrywide clients, investors, shareholders, his employees, the media and the American people.

New York is the latest to pass a tough law with stronger protections to put an end to many of the abuses that led to today’s foreclosure crisis.  This action came on the heels of new laws in Connecticut and Maryland, and Michigan is actively considering a robust bill, too. Approximately a dozen states, including Ohio, Minnesota, and North Carolina last year, have taken the lead in passing common-sense protections consumers should have had all along.

The New York law, which the Governor will sign in the next few days, cracks down on some of the abusive practices that led to today’s massive foreclosures.  Among the key new protections are these:

• Puts the brakes on reckless lending–lenders must consider a borrower’s ability to repay a subprime home loan.
• Stops trapping families in bad loans–prohibits prepayment penalties on subprime loans.
• Discourages destructive refinances–bans flipping of any loans into subprime loans without a reasonable and tangible net benefit to the borrower.
• Makes mortgage payments reflect true costs–requires escrows of taxes and insurance for all subprime loans.
• Gives homeowners a fighting chance–allows violations to be offered as a defense to foreclosure to help keep people in their homes.
• Provides more notice before foreclosure–requires a 90-day notice for delinquent borrowers who received a risky loan in the last 5 years, prior to beginning any foreclosure proceeding.
• Encourages better communication and options for homeowners–requires settlement conferences between the foreclosing lender and homeowner before foreclosure.

California—the country’s largest and most-expensive market—can especially benefit from adopting these critical protections.  Despite being the epicenter of reckless subprime lending, the California Senate Banking Committee recently gutted an already-limited package of common-sense mortgage protections in favor of toothless legislation merely directing state regulators to enforce weak federal laws.  California has the opportunity to be a leader in protecting home owners—and cleaning up the rampant abuses in subprime and nontraditional mortgages is the place to start.

California and other states that have yet to act on the foreclosure crisis would do well to take a page out of the playbooks of states like New York.  Our country’s communities and economies can’t wait.

From the Center of Responsible Lending

“Countrywide exploited the American dream of homeownership and then sold its mortgages for huge profits on the secondary market,” Attorney General Brown said. “The company sold ever-increasing numbers of complex and risky home loans, as quickly as possible. Countrywide was, in essence, a mass-production loan factory, producing ever-increasing streams of debt without regard for borrowers. Today’s lawsuit seeks relief for Californians who were ripped off by Countrywide’s deceptive scheme.”

Brown alleges that Countrywide Financial used deceptive tactics to push homeowners into complicated, risky, and expensive loans so that the company could sell as many loans as possible to third-party investors. According to the lawsuit, the company marketed complex and difficult to understand loans with very low initial or “teaser” interest rates or payments. Countrywide employees, including loan officers, underwriters, and branch managers–who were under intense pressure to process a constantly increasing number of loans–misrepresented or obfuscated the fact that borrowers who obtained certain types of loans would experience dramatic increases in monthly payments.

In the past, lenders like Countrywide sold home loans to customers and held the loans in their own portfolio, an incentive to maintain strong underwriting standards. Countrywide, however, sold its loans to third-parties in the form of securities or whole loans, often earning more profit for riskier loans. The business model generated windfall profits for Countrywide.

The company pushed these loans by emphasizing a low “teaser” or initial rate, often as low as 1 percent for pay option ARMs. Countrywide obscured the negative effects–including rising rates, prepayment penalties and negative amortization–which would inevitably result from making minimum payments or trying to refinance. The company misrepresented or hid the fact that borrowers who obtained its home loans–including exploding adjustable rates and negatively amortizing loans–would experience dramatic increases in monthly payments.

In an effort to rope in as many customers as possible, Countrywide greatly relaxed and liberally granted exceptions to its mortgage lending standards. Traditionally, lenders required borrowers to document income and assets but Countrywide offered reduced or no documentation loan programs to increase its loan sales. Angelo Mozilo and David Sambol actively pushed for easing underwriting standards and granting exceptions to documentation requirements.

In Countrywide’s 2006 annual report, the company touted the massive growth of its loan production from $62 billion in 2000 to $463 billion in 2006–three times the increase of the U.S. residential loan production market, which tripled from $1.0 trillion in 2000 to $2.9 trillion in 2006. 26 percent of Countywide loans were for California properties. The company sold an ever-increasing number of loans in an effort to gain a 30 percent market share of loan originations and then sell its loans on the secondary market, as mortgage-backed securities or pools of whole loans. Countrywide’s securities trading volume increased from $647 billion in 2000 to $3.8 trillion in 2006.

Countrywide routinely sold loans based upon a borrower’s stated income and without verifying the information. Loan officers memorized scripts that marketed low payments by focusing on the potential customer’s dissatisfaction, saying, for example, “Which would you rather have, a long-term fixed payment, or a short-term one that may allow you to realize several hundred dollars a month in savings?” The loan officer did not state that the payment on this new loan would exceed the payment on the current loan.

Countrywide paid greater compensation to brokers for loans with a higher interest rates, as well as prepayment penalties, because it could sell those loans for higher prices on the secondary market. Countrywide also paid rebates to brokers who originated loans with prepayment penalties, adjustable rates and high margins.

Countrywide operated an extensive telemarketing operation in which it touted its expertise and claimed to find the best financial options for customers. Customer Service representatives at Countrywide call centers were required to complete calls within three minutes, often processing sixty-five to eight-five calls per day. Employees who did not meet quotas were terminated. The company’s deceptive marketing practices, designed to sell costly loans while hiding or misrepresenting the terms and dangers, included:

• Encouraging borrowers to refinance or obtain financing with complicated mortgage instruments like hybrid adjustable rate mortgages or payment option adjustable mortgages
• Marketing complex loan products by emphasizing a very low “teaser” rate while misrepresenting the steep monthly payments, increased interest rates and risk of negative amortization
• Dramatically easing underwriting standards to qualify more people for loans
• Using low or no-documentation loans which allowed no verification of stated income
• Hiding total monthly payment obligations by selling homeowners a second mortgage in the form of a home equity line of credit
• Making borrowers sign a large stack of documents without provider time to read the paperwork
• Misrepresenting or hiding the fact that loans had prepayment penalties

As the secondary market’s appetite for loans increased, Countrywide further relaxed its standards to finance borrowers with ever-decreasing credit scores. Countrywide employees routinely overrode the company’s computerized underwriting system, known as CLUES, which issued loan analysis reports recommending or discouraging loans based on factors such as a consumer’s credit rating. As the pressure to produce loans increased, Countrywide set up an entire department in Plano, Texas, at the direction of Mozilo and Sambol, where employees could submit requests for underwriting exceptions. In 2006, 15,000 to 20,000 loans a month were processed through this exception process.

Countrywide’s deceptive sales practices resulted in a large number of loans ending in default and foreclosure. According to Countrywide’s February 2008 records, a staggering 27 percent of its subprime mortgages were delinquent. Overall, approximately 20,000 Californians lost their homes to foreclosure in May 2008 and 72,000 California homes were in default, roughly 1 out of 183 homes.

Despite receiving numerous complaints from borrowers claiming that they did not understand their loan terms, Countrywide ignored loan officer’s deceptive practices and loose underwriting standards. Countrywide also pushed its borrowers to serially refinance, repeatedly urging borrowers to obtain home loans to pay off their current debt.

Today’s lawsuit, filed this morning in Los Angeles Superior Court, redacts confidential information Countrywide provided during the attorney general’s investigation. The attorney general is seeking the company’s consent to file an amended complaint that removes the redactions.

During the course of its investigation into Countrywide, state investigators reviewed hundreds of thousands of documents and interviewed scores of witnesses including consumers and former employees.

Consumers who believe they have been victimized by Countrywide Consumers should file a complaint by contact the Attorney General’s Public Inquiry Unit in writing at Attorney General’s Office California Department of Justice Attn: Public Inquiry Unit P.O. Box 944255, Sacramento, California or through an online complaint form: http://ag.ca.gov/contact/complaint_form.php?cmplt=CL

The case is People v. Countrywide, Los Angeles Superior Court case number LC081846.

• Complaint Document  [PDF 1013 kb / 46 pg]

It looks like the Illinois Attorney General seems to agree with my point of view.

NY Times:

The Illinois attorney general is suing Countrywide Financial, the troubled mortgage lender, and Angelo R. Mozilo, its chief executive, contending that the company and its executives defrauded borrowers in the state by selling them costly and defective loans that quickly went into foreclosure.

The lawsuit, which is expected to be filed on Wednesday in Illinois state court, accused Countrywide and Mr. Mozilo of relaxing underwriting standards, structuring loans with risky features, and misleading consumers with hidden fees and fake marketing claims, like its heavily advertised “no closing costs loan.” Countrywide also created incentives for its employees and brokers to sell questionable loans by paying them more on such sales, the complaint said.

In reviewing one Illinois mortgage broker’s sales of Countrywide loans, the complaint said the “vast majority of the loans had inflated income, almost all without the borrower’s knowledge.”

My company, Loan Safe Solutions, performs mortgage audits for attorneys and consumers across the country and in doing so, we have noticed a pattern of abuse from loan officers, brokers and lenders. The #1 abuser that seems to cross our desks every day is Countrywide Home Loans.

The country’s biggest fish holds the largest stock pile of toxic and fraudulent loans than any other lender in the foreclosure sea. It looks like our country’s law makers are starting to understand the fact that there is something every fishy in these loans, and the stench is starting to fill our court rooms across the nation.

NY Times:

“People were put into loans they did not understand, could not afford and could not get out of,” Ms. Madigan said. “This mounting disaster has had an impact on individual homeowners statewide and is having an impact on the global economy. It is all from the greed of people like Angelo Mozilo.”

Read the rest of the story from the NY Times

All this has been accomplished online and all done pro bono by the Loan Safe team. There is not one company in the nation that gives you the truth, the facts, and the results like Loan Safe! America’s #1 home loan forum.

Thanks to all the people who have helped me make my dream a reality, we have helped countless people save their homes. Just like Jim below.

We hope to help many more people fight their lender and get the help that they need and deserve. Join our community today!

Testimonial:

I have a thread out there on LoanSafe.org that started out as “The Clock is Ticking”.  It has been changed to “The Clock Not Ticking Anymore – CW Success”.  To all that read this, my word of advice is don’t give up!  Follow the advice that Moe, Cat, and the other moderators give to you.  It worked for me.  I just overnighted my signed Loan Modification agreement this evening to CW.   

Short history:  My ARM kicked in March of 2007.  Employment issues caused us to miss several payments.  We were offered a repayment plan through the rest of the year that more than doubled our mortgage payment.  We paid as long as we could but ran out of savings.  In October I called to request a modification.  I was assigned a negotiator and told it could take thirty days but my chances looked good.  I called every week, as I’m sure you all do, to find no progress.  Fast forward to March 2008.  I find out that our modification had been denied but their database was messed-up back then and I should reapply for modification.  Why not?  I was assigned another negotiator and told, it could take thirty days.   

About this time I started doing some research on Google for help with foreclosure.  I came across LoanSafe.org, registered, told my story and was immediately offered advice.  On March 24^th, we

received a summons taped to our door for foreclosure.  I called CW and was told the modification was still in process, no foreclosure date had been set and not to worry.  At this point we were ready to give up.  We went to a bankruptcy attorney and were set to file.   

Along came Cat Damiano, LoanSafe.org.  Urging me to go straight; to the office of the President.  I sent emails explaining our situation to the list she provided hoping for something.  I received a response from them the same day.  They were assigning a new negotiator and also informed me that my second attempt at modification had been denied but this negotiator who worked for the President was going to try it again.   

I received a call three weeks later telling me they had worked out a modification with the bank, the terms were to reinstate the original interest rate for five years, all missed payments would be added to the end of the loan and I would not have to put down any money upfront to reinstate the agreement.  I have tears in my eyes as I’m finishing this.  It was a long battle but it appears we got what we wanted, to keep our home of 14 years.   

Moe, thanks for the foresight and initiative to start this website and Cat, I’m at a loss for words (hard to believe), my family will forever be indebted to you and words can’t do justice for the help you’ve provided.  How’s a simple:  THANK YOU!!!!

JMCD311