California's attorney general announced that he has uncovered "shocking new details" about how Countrywide Financial Corp. disregarded prudent underwriting and deceived borrowers. He said wholesale account executives were paid higher commission rates for persuading mortgage brokers to sell more option adjustable-rate mortgages. AEs also allegedly received higher commissions if their brokers steered borrowers into loans with high rates and fees even though they qualified for better terms. An amended complaint alleging "twenty new details about the company's scheme to deceive consumers into taking out dangerous mortgages" has been filed in a lawsuit filed last month.
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