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Thursday, Mar 28, 2024

Countrywide Update: B of A Transaction Approved, New Lawsuit Filed

The attorney general of California filed suit on Countrywide Financial and two of its directors on the same day that Countrywide shareholders voted to approve a proposed multi-billion dollar merger with Bank of America. In a prepared statement, Attorney General Jerry Brown stated. ” 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.” Chairman and CEO Angelo Mozilo and President David Sambol are specifically named in the suit, with Brown alleging they “actively pushed for easing underwriting standards and granting exceptions to documentation requirements.” The Illinois attorney general is expected to submit a similar suit later today while Countrywide fights multiple legal battles with other states, pension funds and individual shareholders. The Countrywide-Bank of America merger is expected to close on July 1, according to a statement released by Countrywide, “pending the satisfaction of customary closing conditions.”

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