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048.308-03-05 Memorandum Opinion, Hon Jeff Bohm, US Judge, TX
Conduct of Countrywide, and now BAC/Countrywide, which started in 2004, andcontinues even today, in part – since July 3, 2007, has been an exact repeat of conduct described in detail in the Memorandum Opinion referenced above.In that Memorandum Opinion, Countrywide is quoted as making promises to avoidsuch conduct in the future, and the court stated its determination to verify that itstrust in such promises was well placed.The scheme involving Todd Boock, Bryan Cave, LLP, Sandor Samuels, Angelo Mozilo,Tim Mayopoulos, and eventually Ken Lewis, where at the end nobody is purportedly accountable for racketeering in the court in LA, was exact copy of the abuse of OutsideCounsel procedures noted in the Texas decision.The Opinion was described in media as “rebuke” of Countrywide’s litigation practices.Indeed, the Hon Jeff Bohm does not mince words:
“…During several hearings over the past year, the Courtreceived evidence on a wide range of misconduct beyond thisinitial misrepresentation.The parties are a mortgage loan servicer and its two law fIrms: (I)Countrywide Home Loans, Inc. (Countrywide), the loan servicer forFannie Mae, the mortgagee of the Debtor's home loan; … Theircollective conduct caused this Court to issue two Show CauseOrders. This Memorandum Opinion discusses how their actionsin the case at bar have shown a disregard for the professionaland ethical obligations of the legal profession and judicialsystem.”
7. Policy changes made by the parties as a result of theshow cause hearing
More than nine months passed between the issuance of the FirstShow Cause Order and the closing arguments in this matter.During this time, each of the parties attempted to respond to theissues raised by the Court and the UST. Although a multitude ofissues remain unresolved, the Court is pleased that some stepshave been taken in the right direction. After the parties read thisMemorandum Opinion, the Court hopes they will continue theseimprovements.'
Changes made by Countrywide
Countrywide has made two changes as a result of the ShowCause Orders.27 First, Countrywide no longer refers Fannie Maeloans to a single national counsel. [Aug. 8, 2007 Hr'g Tr.157:10-21.] Insofar as this change means that Countrywide willbe directly communicating with attorneys who file pleadings onbehalf of Countrywide, the Court believes that this is a positivechange. Second, Countrywide will require that internal affidavitsbe executed prior to the filing of a motion to lift stay, and will bediligent about communicating with outside counsel to ensure thatCountrywide provides accurate information. [Aug. 8, 2007 Hr'g Tr.158:25-159:7.]'
Digitally signedby Joseph Zernik DN: cn=JosephZernik,firstname.lastname@example.org, c=USDate: 2009.03.2823:32:31 -07'00'