Tuesday, January 8, 2008

Big News on the Big $hitpile

This ain't good
Countrywide Financial tells judge it 'recreated' letters -NYT
By MarketWatch
Last update: 11:25 a.m. EST Jan. 8, 2008

The Countrywide Financial Corp. fabricated documents related to the bankruptcy case of a Pennsylvania homeowner, court records show, raising new questions about the business practices of the giant mortgage lender at the center of the subprime mess, The New York Times reported on its Web site Tuesday.

The documents - three letters from Countrywide addressed to the homeowner - claimed that the borrower owed the company $4,700 because of discrepancies in escrow deductions. Countrywide's local counsel described the letters to the court as "recreated," raising concern from the federal bankruptcy judge overseeing the case, Thomas P. Agresti.
CFC is down 15% right now to $6.50 per share. Think Bank of America is rethinking their stake in this stinker?

Hard to imagine the a company led by such an upstanding, ethical CEO like Tan Man Mozillo would be caught fabricating legal documents. Hard to imagine...

No comments: