There was fraud in many home mortgages. We should see more of these cases but California is one of the few states where there have been prosecutions.
It is difficult to convince me that with Countrywide’s vast portfolio that this practice was uncommon. One of the best ways to defraud a homeowner is to sell him on the idea of cheap credit, lowering his monthly payments, knowing all along the loan will revert to a floating rate. That new interest rate produces a devastating increase in monthly payments forcing foreclosure. This is fraud. Conning people into home loans is what the great lecturers on personal responsibility claim was a rare event.
I don’t think so.
Here is one of my articles on this subject – Bank of America Sued Over Countrywide Mortgage Related Investments