AIG, Countrywide, Sue Each Other Over Subprime Mortgage Default Claims
Why is no one talking about this story? Countrywide, a major writer of subprime mortgages, was taken over by the federal government last year and then sold to Bank of America. Come on, already it smells – Countrywide, Bank of America, AIG, Government….do you smell that?
Well, now Countrywide, or is it Bank of America, is suing AIG and demanding they pay $43 million more in insurance claims for policies covering tens of thousands of subprime mortgages that are now in default. AIG has already paid out insurance claims totaling over $30 million on the Countrywide mortgages and is exposed to million dollars more. So AIG is also suing back, charging that Countrywide “fraudulently misrepresented” the risk of those mortgages, which AIG claimed were made without the normal underwriting standards and guidelines. Does this sound familiar? Isn’t anyone seeing a pattern here? Read the entire story at the link below.