AIG Sues Countrywide for Misrepresenting Mortgages

[Joanne98]

March 19 (Bloomberg) -- An American International Group Inc. unit sued Countrywide Financial Corp., accusing the mortgage lender of misrepresenting the underwriting standards of loans the AIG subsidiary insured.

“As a result of the unprecedented number of defaults in the mortgage loans, United Guaranty has already paid out insurance claims totaling over $30 million and is exposed to additional claims of several hundred million dollars more,” AIG’s United Guaranty Mortgage Indemnity Co. said today in a complaint filed in federal court in Los Angeles.

Countrywide, bought last year by Bank of America Corp., sought insurance for the subprime mortgage loans to increase the credit ratings of mortgage-backed securities in which the loans were bundled, according to the complaint. Countrywide falsely claimed the loans were originated in strict compliance with its underwriting standards, the AIG unit said.

http://www.bloomberg.com/apps/news?pid=20601087&sid=asyt57Oy8jYI&refer=home

Oh no! It's CANNIBALISM!

[WannaJumpMyScooter]

1. and our tax dollars are paying for

this stupidity, right?

[Xipe Totec]

2. It actually makes sense

you have to drill down to see who was doing what to whom.

Countrywide can in turn sue the companies from which it bought mortgages for misrepresentation.

And drill all the way down to the properties themselves.

[Warpy]

3. Mozillo and all his merry fraudsters

belong in prison for what they did at the end of the housing bubble, especially in California.

Anybody who wrote up a liar loan or wrote up a loan on an uninspected property needs to go to jail.

[DJ13]

4. So the US taxpayer pays for AIG who is suing the US taxpayer paid for Countrywide?

:crazy:

[rrneck]

5. They're starting to feed

on each other. How about we take all these crooks, put them in a big room, give each of them a gallon of moonshine whiskey and a straight razor then throw $10,000 on the floor. Come back in the morning and throw the last one standing in jail.

[Fresh_Start]

6. This should be interesting

Let them do all the finger pointing they want...but please back it up with documentation so people can be sued and/or imprisoned.

[cloudbase]

7. We'll blame somebody else

because we couldn't be troubled to perform our due diligence.