Wall Street Journal (03/05/08) P. B10; Efrati, Amir
Countrywide Financial Corp. is being sued by the U.S. Trustee Program on behalf of homeowners in Florida and Texas for initiating foreclosure proceedings--charges the nation's biggest mortgage lender denies. The Texas suit involves five borrowers in Brownsville with discharged bankruptcies and up-to-date loan payments and centers on accusations that the lender imposed hidden fees. The litigation insists that Countrywide's computer system needs to be upgraded so that borrowers' payments are properly recorded, a sentiment echoed by University of Iowa bankruptcy law professor Katherine Porter, who urges Bank of America--which is in the process of acquiring the company--to make the necessary technology improvements. In response to the suit, 103 foreclosure sales have been postponed in the state by Countrywide. Meanwhile, the lawsuit in Florida involves a property whose mortgage was wiped out through bankruptcy four years prior to the lender's attempts to foreclose.
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