On various business-oriented blogs today, I've seen a lot of griping about the news that Illinois Attorney General Lisa Madigan is suing Countrywide Financial for engaging in deceptive business practices. Some of these complaints have called into question Madigan's decision to target Countrywide, pointing out that the company is one of numerous bad actors in the financial sphere. Others have chalked Madigan's move up to political grandstanding.
But it's important to remember that, in terms of Illinois alone, Countrywide is the biggest fish in the pond. From The New York Times:
For 2004 through 2006, Countrywide was the largest lender in Illinois, selling about 94,000 loans to consumers in the state, the complaint said. The company operated about 100 retail branch offices in Illinois and its loans were offered by many mortgage brokers licensed to do business there. Countrywide also purchased loans through a network of 2,100 correspondent lenders in the state.
More from Illinois Issues:
The company’s practices were particularly harmful to Chicago and the surrounding counties, the suit says.
The Chicago area had the most subprime loans of any metropolitan area in the country, according to a 2006 study by the Chicago Reporter, an investigative magazine. And Countrywide held more of those loans than any other lender. The Chicago area also has one of the highest foreclosure rates in the country.
The attorney general also says her office has received more than 200 complaints about the company since 2005.
Anonymous (not verified) on Thu, 06/26/2008 - 07:26
Here's a news story from WEEK-TV on the Central Illinois Organizing Project challenging the foreclosure of a Countrywide mortgage in Bloomington.
http://www.week.com/news/local/20580889.html