Ambac found that 97 percent of 6,533 loans it reviewed across 12 securitizations sponsored by Countrywide didn’t conform to the lender’s underwriting guidelines, according to the complaint filed yesterday in New York state Supreme Court. Many of the loans were made to borrowers with limited or no ability to meet their payment obligations, Ambac said.
Ambac found that ninety seven percent of the loans it reviewed did not meet the guidelines that COUNTRYWIDE had set for these loans, and which it then represented to Ambac when it purchased that insurance.
That is, Ambac alleges that Countrywide made the loans, knowing they were no good, then attempted for force someone else to eat their loss for their intentional conduct through subterfuge. That’s pretty much the textbook definition of fraud.
Ambac said in its complaints that it’s “entitled to redress for Countrywide’s massive fraud and pervasive and material breaches, including damages sufficient to place Ambac in the same position it would have been in had it never insured the transactions.”
The MBS buyers are also entitled the same relief.
And those firms and executives that knowingly and intentionally permitted and promulgated this?
THEY MUST BE CRIMINALLY PROSECUTED, AS THERE IS PLENTY OF EVIDENCE THAT THIS WAS NOT A MISTAKE BUT RATHER WAS AN INTENTIONAL SERIES OF ACTS.