LOS ANGELES (CN) – In a class action, 15 named plaintiffs claim Attorney General Jerry Brown has refused to enforce a 2008 injunction ordering Bank of America and affiliates to cure their “predatory lending practices” in “hundreds of thousands of unconscionable loans.”
The homebuyers say Brown caved in to mortgage lenders, including BofA predecessor Countrywide Home Loans, and “refuses to further enforce flagrant violations of Real Parties in Interest to the Stipulated Judgment.”
The proposed class in Superior Court covers Californians whose residential mortgages, secured by their homes, are “serviced by Real Parties in Interest because of their purchase of Countrywide Financial Corporation, Countrywide Home Loans Inc., and Spectrum Lending.”
The Real Parties in Interest include Bank of America, which bought Countrywide and Spectrum after they collapsed, and BofA affiliates.
“On or about October 20, 2008, Real Parties in Interest entered into a Stipulated Judgment and Injunction with respondent Edmund G. Brown Jr., attorney general of California … acknowledging liability for a scheme of predatory lending practices,” according to the complaint. “Which lending practices have resulted in hundreds of thousands of unconscionable loans being provided to person[s] such as petitioners.
“The Judgment required substantive acts by the Real Parties in Interest to reverse the foreseeable consequences to the borrowers who had been given the unconscionable loans, including but not limited to loan modifications, reversal of interest, elimination or [sic: recte of] adjustable rate mortgage payment plans (ARM), in exchange for 30 year fixed mortgage.
“The Judgment specifically excluded a provisions wherein individuals would have a private right to enforce its terms and the only entity that could enforce the terms and or determine that the Real Parties in Interest were in compliance with the terms of the Judgment were respondent Edmund G. Brown Jr., attorney general. Notwithstanding numerous requests by petitioners and other similar[ly] situated citizens of California, respondent Edmund G. Brown Jr., attorney general, refuses to further enforce the flagrant violations of Real Parties in Interest to the Stipulated Judgment. In particular, Real Parties in Interest in the matter of Farmet vs. Countrywide Home Loans (S.D. Cal. 2009) 2009 WL 189025 successfully argued that Californians had no right to loan term modifications and no private right to enforce said right, notwithstanding the Stipulated Judgment.”
The Stipulated Judgment and Injunction, signed by Superior Court Judge Richard Wolfe, is attached to the complaint.
Plaintiffs in the new complaint are represented by Moses Hall. They seek writ of mandamus.