Countrywide Faces Class Action Over Fees
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A U.S. district court judge in Texas approved class-action status for a lawsuit against Countrywide Credit Industries Inc. alleging the largest independent mortgage bank illegally charged fees for legal documents not prepared by lawyers, the Houston Chronicle reported.
The lawsuit also alleges the Calabasas-based company took kickbacks from a Houston law firm listed as doing the legal work, the paper said. Lawyers estimate more than 50,000 Texans who bought homes with a Countrywide mortgage since Jan. 10, 1996, would be eligible to recover a maximum of $1,750 each.
Countrywide attorney Rob Mowrey told the Chronicle consumers weren’t injured when a legal firm paid Countrywide to do some clerical work on legal papers. The company is appealing U.S. District Judge David Hittner’s decision.
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