US Challenges Countrywide Financial Deal
The Justice Department has challenged an agreement that the Countrywide Financial Corporation reached in a bankruptcy court in Pittsburgh, saying it would make it harder to investigate and sue the mortgage lending giant.
Last month, Countrywide agreed to pay $325,000 to the Chapter 13 bankruptcy trustee in Pittsburgh, Ronda J. Winnecour, to cover legal costs and settle litigation accusing it of abusive practices in 293 separate cases.
However the Justice Department said a “nondisparagement” clause in the Countrywide agreement might impede its own investigation of the lender. The Office of the United States Trustee is a Justice Department arm that handles bankruptcy cases.
Read the full U.S. Challenges Countrywide Financial Deal story
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Posted by Carlos Sagastume on August 26, 2008. Filed under HUD Homes.
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