Countrywide Filing Shines Light on Loans

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An amended complaint filed Thursday by the California attorney general related to a suit against Countrywide Financial Corp. sheds new light on the poor quality of loans the company was planning to sell to investors.

The new data provide a close look at 158,000 mortgages that had been slated for sale by Countrywide Homes Loans before last summer’s credit crunch — which was triggered by rising mortgage defaults — turned investors away from mortgage-backed securities.

Nearly 48 percent of nonprime loans and 21 percent of pay-option adjustable-rate mortgage in that portfolio were in some stage of delinquency or foreclosure as of April 30, according to the amended complaint, filed by California Attorney General Jerry Brown in state court in Los Angeles.


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