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The state of Connecticut says countrywide conned customers in to signing deceptive loans.
And now the attorney general says he wants countrywide to pay for that here's -- complaint let's show it to you countrywide made loans to consumers which we're not suitable.
Not affordable were not appropriate for consumers' specific situations.
And were not made based on consumers' ability to pay.
Joining us now first on Fox Business Richard Blumenthal Connecticut attorney general good to see you sir thanks for coming on fox first care.
Thank you for having me again.
The evidence we have to know do you have that indicates that countrywide did more than say just be aggressive as a writer mortgages but rather actually calmed people to -- on the dotted line.
Essentially what countrywide -- is too.
Fully and conned people into mortgage loans that were unaffordable and countrywide knew or should have known.
They were unaffordable and the evidence for example consists of inflated incomes.
That were in the long documents.
Homeowners that we're taking loans and maybe most troubling.
Made by countrywide representatives that those homeowners could refinance.
Later years a couple years later if the interest rent payments rose to a level that they couldn't afford because a lot of these loans for.
Variable interest rate loans and clearly they would rise to a level when.
At some point in the future when the homeowners couldn't afford them and then the company reneged on its promises to enable them to refinance the fact.
Added fees again evidence in the documents from that simply were excessive and inordinate.
Now what you have this evidence and I'm assuming you have people who were the victims here but how do you know that these people didn't just inflate their own.
Incomes because that has been a case to we found.
Inflated in comes -- only one aspect of the evidence.
What's really clear is that countrywide.
Persuaded even pressured.
These individuals to taking the loans initially.
Obviously we have to believe some of the victims and -- -- many of them.
All across the country including Connecticut but also.
The second round when the deals were renegotiated.
And in -- countrywide.
Allegations are allegations not proven facts but we have a lot of evidence -- These consumers.
Into accepting the renegotiated loans that also doomed.
-- to failure.
Now when you -- countrywide are suing Bank of America obviously because they have absorbed countrywide now we do have a statement from them and here it is.
Big of America saying what we cannot comment on pending litigation we will respond to the attorney general in due course we are confident that our newly combined company.
Will be recognized as a leader in responsible lending practices so they're not flat out saying we think this is outrageous and Richard Blumenthal is outrageous but.
As they look at it.
You're taking on a company that doesn't really exist anymore so how do you go about doing that's.
Well first of all -- you know there are a few people in this world who might say that I was outrageous maybe have in the past but Bank of America.
Fortunately and to their credit.
Isn't one of them not because I take it personally but let me just be very serious Bank of America.
In our initial contact has been receptive.
And has indicated they want to talk to us and that's a very good sign for us because some of these families are literally at the precipice of foreclosure if we can provide them.
With some immediate relief.
It will be as important as any eventual.
Financial recovery -- -- we're seeking restitution.
We want fines and forfeiture -- But we're most concerned about the fates of these families that are vulnerable to foreclosure and default and so I welcome.
Bank of America's involvement.
I was asked.
Why haven't you sued Bank of America the answers -- simply Bank of America didn't own countrywide.
At the time that countrywide committing these alleged violations of law.
Which gives Bank of America in my view not only a different legal.
Situation but also perhaps a different perspective.
So let me just be clear he will not be suing Bank of America.
We have no plans to -- Bank of America and look let me also ask you this you've already started -- with a lawsuit against all the three ratings agencies for.
That ratings that that involve municipal bonds in your state that's Moody's Fitch and S&P you've taken on countrywide whose next -- Well you know we make judgments about legal action based on the evidence and the law and certainly.
No secret any of you -- viewers or any American there have been in grave violations.
Of law that could be alleged in the home.
And we have a number of those.
Issues under investigation which are separate from the rating agencies yes but there as I.
Said when you spoke to me last week.
We have a continuing investigation involving bond insurers and rating agencies and others as -- antitrust violations.
Like you did say that and we are waiting for when that news comes out so please let us know when it does and you'll be right back here on Fox Business thank you for coming on.
Thank you Richard Blumenthal is the Connecticut attorney general filing suit against countrywide thing.
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