Posted on 03/08/2008 3:55:39 PM PST by John W
NEW YORK (MarketWatch) -- Besieged subprime lender Countrywide Financial Corp. is being investigated by the Federal Bureau of Investigation for possible securities fraud, according to a news report Saturday.
The Wall Street Journal report said the probe focuses on whether Countrywide's management misrepresented the quality of its mortgages in routine securities filings, which may have led investors to overvalue the loans it then securitized into more than $100 billion worth investment vehicles between 2004 and 2007.
Banks and lenders lost billions of dollars over bad bets on mortgage-backed securities and analysts estimate they will continue to stanch the bleeding well into 2008.
The FBI inquiry will also take a closer look at how common fraud was in Countrywide's origination process, the report quoted unnamed sources as saying.
The agency is currently investigating more than a dozen subprime lenders about their origination and securitization processes and possible conflicts of interest between the lenders and Wall Street.
(Excerpt) Read more at marketwatch.com ...
I fell bad that I paid my mortgage off years ago.
Seriously glad we never went through a refinance with them.
I can help you get over that bad feeling, just send me your bank transit number and we can do business, you can adopt me .. and my mortgage.
Just think of that warm glow you’ll have
So, does this mean if they go Tango Uniform (TU), I get off scott free on what I owe on my mortgage with them?
If so, I hope theyb crater deep.
No, some entity will end up with your mortgage no matter what happens.
You convinced me. Go to the Bear River Casino and stand in line at the back door with ALL OF MY CHILDREN.
Cue theme music
They should start here -
***
we should be clear that the "investors" in these things weren't mom and pop. They were professionals for whom the words 'caveat emptor' were kindergarten material. They can spell words like "fiduciary" and "due diligence."
what does this mean for Bank of America?
when did that thing land?
It means they probably tipped off the FBI to get out of that awful deal they did a few months ago.
Wonder how this will affect B of A.
“No, some entity will end up with your mortgage no matter what happens.”
I know. Just wishfull thinking...
((((((((((((((sigh)))))))))))))
“Problems would hit merger
If the FBI does find Countrywide misled investors, it could scuttle a planned $4 billion acquisition of the lender by Bank of America, slated to be completed in the third quarter.
Although Bank of America has repeatedly said it has priced in the lender’s financial woes and potential legal troubles, proof of a management plan to overstate the value of Countrywide could mean all bets are off.”
bump
BofA knows that Countrywide Finance has no value. They just want access to Countrywide’s customer base and client lists. BofA will simply get those lists and then drop the acquisition or put Countrywide into bankruptcy so BofA will not be responsible for the liabilities of Countrywide.
It also might be that some creative BK attorney for claimants against Countrywide might look at those lists as assets of the BK estate in an attempt to extract money from BofA.
lol.. sounds like a soap opera, I don’t know, I need to google that casino, that’s pretty country.. :-)
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