How can Countrywide/B of A even keep a straight face when it argues that correspondent lenders need to pay it outrageous amounts of money to settle claims for actual or potential losses? Take a look at this latest report of what Countrywide attorneys tell judges when they are defending Countrywide against claims brought by insurers or other parties.
Did Countrywide do its homework?
Think about the position that Countrywide is in when it makes buyback demands on correspondents. It has virtually always re-sold or securitized the loans about which it is complaining. This fact alone presents numerous problems for Countrywide’s claims. Let’s focus for now on just one of them. Did Countrywide review the loan files before re-selling the loans? Which answer is better for it?
As an attorney actively engaged in litigation of many mortgage and banking-related cases at this time, this is not the place for me to offer a detailed discussion of the arguments that can be made against Countrywide. But you can see what a quandary Countrywide/Bank of America is faced with as it tries to deal with the conflicting demands of its many, many lawsuits — some as plaintiff, many more as defendant — in the mortgage-backed securities and mortgage repurchase areas.