Morning:
8°c
US lenders are sued for 'fraud'
Bill Condie24 Jul 2008
Authorities in San Diego in southern California are looking to make their city a mortgage "foreclosure sanctuary", and are suing home lenders Bank of America and its recent acquisition Countrywide to help carry out the plan.
City attorney general Michael Aguirre also plans similar legal action against Washington Mutual, Wells Fargo and Wachovia in an effort to make the lenders negotiate with mortgage borrowers facing foreclosure.
He claims his city's residents were the victim of fraud by lenders. His action names four current and former Countrywide officers, including former chief executive Angelo Mozilo.
"The Countrywide executives who originated these subprime loans were engaged in a massive fraud on homeowners, borrowers and investors," Aguirre said. "They enriched themselves by over $1 billion [£500.6 million]."
Bank of America declined to comment.
