Countrywide Sued in a Consumer Fraud Lawsuit by Former Employees

Countrywide Financial is being sued in aconsumer fraud lawsuit by a former employee who claims the company purposely inflated property values for Federal Housing Authority-backed loans.

According to Law360 (subscription required), Kyle Lagow claims that Countrywide paid fees that were above-market to appraisers who inflated home values. He also claims the company awarded appraisers who produced as many as 400 appraisals and appraisal reviews - an amount Lagow says would be impossible to accomplish under the constraints of the law. He further alleges that company blacklisted and retaliated against appraisers who refused to overvalue the value of homes.

The consumer fraud lawsuit claims that the company’s actions caused the government to repay lenders at inflated numbers if borrowers defaulted on their home loans.

Others defendants in the complaint include Bank of America, and two Countrywide subsidiaries, LandSafe Inc. and LandSafe Appraisal Services Inc.

If you or a loved one has been wronged by consumer fraud, contact Sokolove Law for a free legal consultation.

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