Copyright: | (c) 2010 A.M. Best Company, Inc. |
Source: | A.M. Best Company, Inc. |
Wordcount: | 559 |
The suit, filed in
“
In its complaint,
Beginning in 2003 and under the direction of Mozilo and Sambol, Countrywide “abandoned any semblance of underwriting standards,” the lawsuit states. The mortgage lender adopted a “matching” strategy — approving any mortgage product offered by a competitor — as it was “singularly focused” on increasing its market share, the suit states.
“Whereas
“Countrywide’s senior management imposed intense pressure on underwriters to approve mortgage loans, in some instances requiring underwriters to process 60 to 70 mortgage loan applications in a single day and to justify any rejections they made,” according to the complaint. “This created an incentive not to review loans thoroughly but instead simply to rubber-stamp them ‘approved.'”
As a result of Countrywide’s “wrongdoing,”
The suit accuses
On the afternoon of
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