Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2014
Mortgage-fraud judgment involving Fannie Mae and Freddie Mac loans
A federal court found Countrywide and Bank of America liable for mortgage-fraud conduct involving loans allegedly misrepresented and sold to Fannie Mae and Freddie Mac, imposing a penalty of approximately $1.267 billion.
2012
Foreclosure and mortgage-servicing abuses
Countrywide’s successor operations were included in the national mortgage-servicing settlement addressing allegations involving foreclosure processes, servicing conduct, borrower treatment, and loan-modification practices.
2011
Fair-lending discrimination settlement
The Justice Department alleged that Countrywide charged qualified African-American and Hispanic borrowers higher fees and interest rates and steered some borrowers into subprime loans despite their qualification for prime products. The settlement provided $335 million in compensation.
2009
SEC securities-fraud and insider-trading case
The SEC alleged that senior executives misled investors about the deterioration of Countrywide’s underwriting standards and the risks of its mortgage portfolio. The agency also alleged that Angelo Mozilo sold Countrywide shares while aware of material nonpublic information about credit deterioration.
2008
Friends of Angelo political-loan controversy
Reports alleged that politically connected individuals received favorable mortgage terms through a Countrywide program associated with CEO Angelo Mozilo. The controversy led to ethics scrutiny involving several public officials and intensified criticism of Countrywide’s governance and relationships with political figures.
2003
Overtime class-action lawsuit
Employees alleged that Countrywide required account executives to work long hours without legally required overtime compensation. The case was settled in May 2005 with a reported $30 million payment to approximately 400 account executives.