Illinois investigates Countrywide
Fallout over the mortgage crisis continues to claim more victims. The Illinois attorney general is investigating the company policies and lending practices of Countrywide Financial Corp.
The investigation stems from a lawsuit filed by the state against One Source Mortgage, a broker funded by Countrywide. The state alleges that One Source Mortgage committed fraud by giving consumers loans that they eventually couldn’t afford, resulting in foreclosure and the loss of their home.
Countrywide is facing a number of legal problems as the mortgage crisis deepens around the country. The nation’s largest mortgage lender is seeing an investigation by the SEC relating to stock sales by the company CEO, Angelo Mozilo.
Foreclosures in Chicago are up nearly 100 percent from last year as many homeowners with adjustable-rate mortgages face rising payments. The Bush Administration has already proposed a rate freeze for these types of loans, a program that could help hundreds of thousands of homeowners around the country.
The Chicago Real Estate market has been hit hard by the mortgage crisis. Sales of condos and homes were down more than 20 percent around the region as many banks and lenders are shying away from new loans.
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