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As more questions arise about easy loan lending practices, Countrywide has found themselves at the center of yet another scandal. The availability of easy loans over the past few years led many into loans they could not afford, and many are charging that some banks may be responsible for predatory lending practices. As a result of these allegations, it has become nearly impossible to get an easy loan, thanks to banks cracking down on loan qualifications and raising their interest rates. The consumer is the one that is suffering in both cases, and few have any answers for their predicament.

“Countrywide exploited the American dream of home ownership and then sold its mortgages for huge profits on the secondary market,” said California Attorney General Jerry Brown. “Countrywide was, in essence, a mass-production loan factory, producing ever-increasing streams of debt without regard for borrowers.”

According to Illinois Governor Chris Gregoire there is, “compelling evidence that Countrywide has engaged in discriminatory lending practices.”

Deb Bortner, the Department of Financial Institutions’ director of consumer services stated, “What we found in our investigation is that many people didn’t know they were in an ARM or a negatively amortizing” mortgage, in which the principal actually increases.”

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