Allstate Sues Countrywide Over Toxic Investments

Allstate sues Countrywide over toxic investments

Allstate Corp. has filed a federal lawsuit against Countrywide Financial Corp. over $700 million in toxic mortgage-backed securities that the insurer bought beginning in 2005, only to see their value decline rapidly.

Allstate alleges that Countrywide abandoned its underwriting standards and misrepresented crucial information about the underlying mortgage loans that made up the securities it sold. Countrywide was the nation’s largest home loan originator.  It sold Allstate securities backed by the mortgages as safe investments and concealed material facts.

Read the rest here.

Also see The Reno Real Estate Guide.


About rereno

Real estate investor
This entry was posted in Banks, Economy, Fraud, Real Estate and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s