Countrywide Financial - 97% fraudulent loans from 2004-2006 (Dodd, politician, economic)

[DRob4JC]

I won't put this in the "too big to fail" category until the court renders a decision.

Ambac Sues Bank of America Over Countrywide Bonds

Ambac found that 97 percent of 6,533 loans it reviewed across 12 securitizations sponsored by Countrywide didn’t conform to the lender’s underwriting guidelines, according to the complaint filed yesterday in New York state Supreme Court. Many of the loans were made to borrowers with limited or no ability to meet their payment obligations, Ambac said.

Basically, Countrywide knew they were bad, and tried to pass the losses off to someone else.

I wonder if any of Chris Dodd's paperwork is in there?

This is part of the reason we are where we are economically. From top to bottom, there is plenty of corrupt behavior that is falsely influencing the market place.

[texdav]

It was all because governamnt in the form of Fannie and freddie actaully encourage inventiveness on lenders part by takig such loans from lendewrs. Just look at the governamnt programs to aid in downpayments;closing and others. It was a time of wanting people to have a part i what they thought would be welth buidlig because of ther apprecation of housing. Its alos why people took those lier loans they thought the worse that could happen is they refied or sold at a good profit.No one of really scammed they just got in on the bubble too late really to profit having seen their friends and family do it.

[DC at the Ridge]

From the article:

"The Ambac case involves 12 Countrywide-sponsored pools of home loans that were created from 2004 to 2006, including nine involving home equity lines of credit and three that involve fixed-amount second-lien loans. "

So, all 12 pools of home loans involved secondary lines of credit that homeowners used offering their homes as security. I think the very nature of these home loans would have suggested higher risk to Ambac.

[jamaicabound60565]

Originally Posted by DRob4JC

I won't put this in the "too big to fail" category until the court renders a decision.

Ambac Sues Bank of America Over Countrywide Bonds

Ambac found that 97 percent of 6,533 loans it reviewed across 12 securitizations sponsored by Countrywide didn’t conform to the lender’s underwriting guidelines, according to the complaint filed yesterday in New York state Supreme Court. Many of the loans were made to borrowers with limited or no ability to meet their payment obligations, Ambac said.

Basically, Countrywide knew they were bad, and tried to pass the losses off to someone else.

I wonder if any of Chris Dodd's paperwork is in there?

This is part of the reason we are where we are economically. From top to bottom, there is plenty of corrupt behavior that is falsely influencing the market place.

Whenn you give Dodd cash and special deals on loans you can do what you want without consequences. Its a good business model to have a crooked politician like dodd in your corner.

[DC at the Ridge]

So, all 12 pools of home loans involved secondary lines of credit that homeowners used offering their homes as security. I think the very nature of these home loans would have suggested higher risk to Ambac.