CA Court Site Info on Foreclosure

Friday, August 15, 2014

B of A Reversed on 3 Counts on Appeal, Homeowner Moves Forward

Bank of America Represented by Bryan Cave Firm of SF California

..."The complaint also alleges that “Countrywide aided and abetted Meridias
Capital’s [fraud] by using deceptive marketing and deceptive loan products as described
in an action by the Attorney General of the State of California and in an action by the
United States Department of Justice.”

The complaints in those actions, attached as
exhibits to plaintiffs’ complaint, contain extensive factual allegations of Countrywide’s
“false advertising and unfair competition in the origination of residential mortgage
loans.” Among other things, the complaint filed by the State of California alleges
“Countrywide deceptively marketed the Pay Option ARM by aggressively promoting the
teaser rate. Television commercials emphasized that the payment rate could be as low as
1% and print advertisements lauded the extra cash available to borrowers because of the
low minimum payment on the loan.

Television advertisements did not effectively
distinguish between the ‘payment rate’ and the interest rate on the loans, and any
warnings about potential negative amortization in Countrywide’s print advertisements
were buried in densely written small type.” The California complaint alleges further that
“Countrywide sought to induce borrowers into believing that it was looking out for their
best interest through various types of solicitations.”

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