California Attorney General Jerry Brown says he's seeking something quite simple for thousands of homeowners who lost money or their houses to foreclosure after borrowing from Countrywide Financial Corp.
Payback.
But the state's top lawyer warned that the journey to compensate troubled homeowners who took out Countrywide loans will be marked by a lot of roadblocks. And just where that journey will lead remains unclear.
As fresh lawsuits hang over BofA's July 1 acquisition, some say the giant bank may get more than it bargained for.
"Bank of America is taking on a big risk," said Kurt Eggert, a law professor at Chapman College in Orange in Southern California.
Eggert said Countrywide could be liable for "huge sums of money and might have to return houses that have been foreclosed. Until this litigation is resolved, it strikes me that Countrywide is under a very dark financial cloud."
Yet, it's by no means clear that California's lawsuit will get traction in the courts, let alone prevail, said Wesley M. Marple, professor of finance at Boston's Northeastern University. Marple's hunch is that Brown is grandstanding and that other states will follow.
"It's a great way of getting political support on the part of the naive electorate," he said. Though attorneys general have "enormous prosecutorial power that dwarfs that of most individuals, Countrywide, with Bank of America, can probably withstand the onslaught," he said.
If you would like to read this whole story, please visit: http://www.paradigmshiftpr.com/media/placements/cajoinsfight.htm
Posts
0 comments:
Post a Comment