A federal judge has approved an investigation into the lending practices of Countrywide (CFC). The mortgage company may have, among other things, charged borrowers large, unjustified fees. That was after they were given loans which the firm might have known they could not repay.
If all of this keeps heading down the path of discovering more and more bad behavior at Countrywide, the liabilities for the firm may pile up.
Bank of America (BAC) might still walk on its deal to buy CFC. How nice would that be?
Douglas A. McIntyre