Judge Slices Claim From Countrywide Fraud Suit

     (CN) – Countrywide customers who are suing the mortgage company cannot continue pursuing a claim for fraudulent concealment, a California appeals court ruled.
     The mortgage giant had appealed after a Los Angeles Superior Court judge refused to throw out the fraudulent concealment claim from a lawsuit filed 248 borrowers suing Countrywide for misconduct in the subprime lending fiasco.
     “We conclude the plaintiffs/borrowers cannot state a cause of action against Countrywide for fraudulent concealment of an alleged scheme to bilk investors by selling them pooled mortgages at inflated values, the demise of which scheme led to devastates home values across California,” Justice Joan Klein wrote for the Second District California Court of Appeals.
     “Due to the generalized decline in home values which affects all homeowners, there is no nexus between Countrywide’s alleged fraudulent concealment of its scheme to bilk investors and the diminution in value of the instant borrowers’ properties,” she added.

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