Bank of America to Pay $335M to Settle Countrywide Case of Alleged Racial Bias
LISA MADIGAN:
Well, what happens is, they don't have policies or procedures in place that prevent this from happening.
And so what we found in our investigation, which involved not just a statistical analysis of the loans that they did in Illinois, but it also involved us looking at what were the policies in place when somebody came in, we learned by talking to brokers and various other Countrywide employees that they were given the discretion to be able to, you know, decide what the interest rate was going to be, what the fees were going to be, what the terms were going to be.
And, in fact, there was a company policy that gave Countrywide employees an incentive to put people into higher-interest loans with these toxic features, so, therefore, those loans are more likely to go bad and end up in foreclosure.
ncG1vNJzZmivp6x7sa7SZ6arn1%2Bjsri%2Fx6isq2ejnby4e8GapaRln5t6ornEq6CcmV2pvG68wLJkbGtlonq1u4ysnK2snJp6pLvUp6ursaeesaZ5wpqqnmWfm3qiuMuenp6cXaeupLXApWSboZGo