Sub-prime mortage lender being investigated by FBI

[texas*princess]

http://money.cnn.com/2008/03/08/news...ion=2008030810

NEW YORK (CNNMoney.com) -- The FBI has launched an investigation into the lending practices of battered home lender Countrywide Financial Corp. according to a U.S. government official, CNN has learned. The mortgage company is suspected of fraud, the official said, which may have contributed to the subprime mortgage crisis that has rocked the U.S. economy.

It looks like Bank of America is getting more than they bargained for when they acquired Countrywide ... I remember hearing about that deal and thinking "WTF? Why would they want Countryside of all lenders?"

[Benzgirl]

Originally Posted by texas*princess

http://money.cnn.com/2008/03/08/news...ion=2008030810



It looks like Bank of America is getting more than they bargained for when they acquired Countrywide ... I remember hearing about that deal and thinking "WTF? Why would they want Countryside of all lenders?"

BofA didn't really have a choice when they acquired Countrywide. They already had a majority interest at stake and either had to jump in to bail them out, and hopefully minimize losses or take a nosedive on their current losses. Strange as it sounds, BofA made the right choice.

The whole sub-prime mess is a shame. Back in the 90s when banks (not mortgage companies) began doing Sub-Prime, they did it right. They knew when a deal was bad and they didn't try to cover up future mistakes by charging exorbitant interest rates. Sub Prime went south when people got greedy.

I'll get off my soap-box and be glad that I work for a lender that only does A Paper.