Countrywide Financial, other lenders in a conspiracy to acquire California

[4runner]

(AP) June 25, 2007 The SEC is investigating allegations that Countrywide Financial, Inc. and other lenders are conspiring to acquire the State of California.

In the recent months, the number of properties owned by lenders has skyrocketed in a trend described as “disturbing” by SEC spokesman Harry Kennedy. “We suspect that several years of low/no doc loans made to grad students, migrant workers, and serial debtors addicted to oversized SUV’s were really just a cover which ultimately allowed these lenders to gain ownership of a disproportionately large percentage of the Golden State,” said Kennedy, who pointed to burgeoning rolls of REO properties as evidence of wrongdoing. Kennedy postulates that the return of these properties by defaulting borrowers was a foreseen consequence of intentionally haphazard lending policies and allowed the lenders to acquire a significant chunk of California “under the radar screen.”

“No one believes that these lenders, with the sophisticated financial tools at their command, were really fooled for years by thousands of penny ante frauds all claiming to generate thousands of dollars in excess income from lawn care businesses ‘on the side,'” said Kennedy, who pointed out that the borrowers claimed to have generated $230 in lawn care income per week for every resident in the state.

The lenders have declined to address the charges and are not returning calls.

[barnaby33]

Sounds just like something I would read on the Onion.

Josh

[barnaby33]

Sounds just like something I would read on the Onion.

Josh

[sdcellar]

That’s funny. Nicely done.

[sdcellar]

That’s funny. Nicely done.

[Diego Don]

Intresting view. I kind of think these big players. Might not be as smart as we would like to believe. Especialy when greed is involved.

[Diego Don]

Intresting view. I kind of think these big players. Might not be as smart as we would like to believe. Especialy when greed is involved.

[betting on fall]

Countrywide owns (or at least has listed for sale) 1748 homes in CA as of today.
see http://www.countrywide.com/purchase/f_reo.asp

[betting on fall]

Countrywide owns (or at least has listed for sale) 1748 homes in CA as of today.
see http://www.countrywide.com/purchase/f_reo.asp

[rocket science]

Only about 1450 of them are below 500K. Do you think that will bring the median down?

BTW two houses in my neighborhood by motivated sellers (job change) sold for at least 12-15% below year and a half ago prices and both would drive the statistical median up… 

The lady up the street wiht her house listed for significantly more than either will not be pleased.

rs

[rocket science]

Only about 1450 of them are below 500K. Do you think that will bring the median down?

BTW two houses in my neighborhood by motivated sellers (job change) sold for at least 12-15% below year and a half ago prices and both would drive the statistical median up… 

The lady up the street wiht her house listed for significantly more than either will not be pleased.

rs

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