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Gov. Chris Gregoire announced today plans to fine Countrywide Home Loans $1 million and revoke the mortgage company’s state license for what she said was predatory and discriminatory lending.
The state Department of Financial Institutions sent Countrywide a list of charges earlier this week as it continues its investigation, according to a release from the governor’s office. The Associated Press said Countrywide did not respond to a phone call earlier today for comment on the governor’s action.
In its investigation, the department examined hundreds of loan files and looked at the differing rates borrowers received, credit scores, loan types, borrower income and other factors. DFI says in its statement of charges that Countrywide sold less favorable loans to minority borrowers.
“That’s why we intend to bring the full weight of the state on Countrywide to rewrite home loans for minority borrowers who may have been misled into signing predatory mortgages,” the governor said in today’s release.
Gregoire’s announcement comes on the same day lawsuits were filed by attorneys general in California and Illinois alleging Countrywide used unfair practices and misleading advertising, according to The Associated Press. Also today, Countrywide shareholders approved the company’s takeover by Bank of America Corp., the AP reported.
Countrywide was among the many lenders dealing in mortgages known as subprime, loans sold to borrowers with shaky credit or other financial troubles. Many point to the proliferation of subprime lending as contributing to today’s weakened U.S. housing market.
A release from the governor’s office said the California-based company also will be required to pay more than $5 million in back assessments.
