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AIG Sues Countrywide for Misrepresenting Mortgages

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Joanne98 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Mar-20-09 01:51 PM
Original message
AIG Sues Countrywide for Misrepresenting Mortgages

March 19 (Bloomberg) -- An American International Group Inc. unit sued Countrywide Financial Corp., accusing the mortgage lender of misrepresenting the underwriting standards of loans the AIG subsidiary insured.

As a result of the unprecedented number of defaults in the mortgage loans, United Guaranty has already paid out insurance claims totaling over $30 million and is exposed to additional claims of several hundred million dollars more, AIGs United Guaranty Mortgage Indemnity Co. said today in a complaint filed in federal court in Los Angeles.

Countrywide, bought last year by Bank of America Corp., sought insurance for the subprime mortgage loans to increase the credit ratings of mortgage-backed securities in which the loans were bundled, according to the complaint. Countrywide falsely claimed the loans were originated in strict compliance with its underwriting standards, the AIG unit said.

http://www.bloomberg.com/apps/news?pid=20601087&sid=asy...

Oh no! It's CANNIBALISM!
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WannaJumpMyScooter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Mar-20-09 01:57 PM
Response to Original message
1. and our tax dollars are paying for
this stupidity, right?
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Xipe Totec Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Mar-20-09 01:58 PM
Response to Original message
2. It actually makes sense
you have to drill down to see who was doing what to whom.

Countrywide can in turn sue the companies from which it bought mortgages for misrepresentation.

And drill all the way down to the properties themselves.

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Warpy Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Mar-20-09 01:59 PM
Response to Original message
3. Mozillo and all his merry fraudsters
belong in prison for what they did at the end of the housing bubble, especially in California.

Anybody who wrote up a liar loan or wrote up a loan on an uninspected property needs to go to jail.
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DJ13 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Mar-20-09 02:11 PM
Response to Original message
4. So the US taxpayer pays for AIG who is suing the US taxpayer paid for Countrywide?
:crazy:
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rrneck Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Mar-20-09 02:13 PM
Response to Original message
5. They're starting to feed
Edited on Fri Mar-20-09 02:14 PM by rrneck
on each other. How about we take all these crooks, put them in a big room, give each of them a gallon of moonshine whiskey and a straight razor then throw $10,000 on the floor. Come back in the morning and throw the last one standing in jail.
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Fresh_Start Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Mar-20-09 02:20 PM
Response to Original message
6. This should be interesting
Let them do all the finger pointing they want...but please back it up with documentation so people can be sued and/or imprisoned.
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cloudbase Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Mar-20-09 03:28 PM
Response to Original message
7. We'll blame somebody else
because we couldn't be troubled to perform our due diligence.
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