More trouble for Countrywide Financial

November 28th, 2007 | Category: Law, Scandals, Housing, Economic Data

Another day, another poor headline for Countrywide Financial (NYSE: CFC). The New York Times is reporting that Countrywide has received a federal subpoena related to possible abuses of bankruptcy laws in Florida.

One of the issues relates to excessive and unwarranted fees that some say Countrywide is charging troubled homeowners. As I blogged earlier that month, one recent study found that roughly half of mortgages going through Chapter 13 bankruptcy restricted questionable fees.

Countrywide Financial may have accomplished something pretty strange: exploiting its customers and behaving in an ethically questionable manner while plus losing money hand by fist for its shareholders.

It’s kind of like a baseball player using steroids and hitting .220 with 3 home runs.

Either way, CEO Angelo Mozilo’s tan still looks fabulous.

Original post by Zac Bissonnette

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