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Recalled Eclectic Institute Supplements May be Tainted with Salmonella

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Foreclosed homeowners, lead by plaintiff Tom Casault, have filed a federal class action lawsuit against Freddie Mac, Fannie Mae, IndyMac Bank, Countrywide Financial and other “leading providers of residential real estate mortgages,” claiming their  actions caused the mortgage meltdown and caused damage and destruction to the plaintiffs credit ratings.

The class action lawsuit states in its 101-pages that “The fraud perpetrated by the originator defendants from 2000 through 2009 was willful and pervasive.” The suit continues, “It began with simple greed and then accelerated when said defendants discovered they could not sustain their businesses, unless they systematically and significantly reduced their underwriting standards and created increasingly complex, esoteric, and high-risk loan products to induce plaintiffs and other borrowers into ever larger loans on increasingly risky terms. As the originator defendants knew from no later than 2004, these loans were unsustainable for the borrowers and to a certainty would result in a crash that would destroy the equity invested by plaintiffs and other California borrowers. Further, those actions would cause the high risk pools of mortgages the originator defendants had sold to Real Estate Mortgage Investment Conduits (REMICs) and/or trusts to default on a nationwide scale. …

“It is now all too clear that this was one of the ultimate high-stakes fraudulent schemes of the last decade. Couched in banking and securities jargon, the originator defendants deceptive gamble with consumers’ primary assets – their homes – was nothing more than a financial fraud perpetrated by the originator defendants and others on a scale never before seen.”

The lawsuit also claims that the defendants purposefully hindered mortgage modifications under the Home Affordable Modification program in order “to exploit a given pool of mortgages for maximal profitability,” Courthouse News reports.

The class action lawsuit seeks damages for violations of California’s Predatory Lending Law, and for violations of the California Business & Professions Codes, as well as of the California Civil and Commercial Codes.

 

 

breakinglawsuitnews.com disclaimer: This article: Recalled Eclectic Institute Supplements May be Tainted with Salmonella was posted on Thursday, December 22nd, 2011 at 8:04 pm at breakinglawsuitnews.com and is filed under Fraud Lawsuits.

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