SUPREME COURT OF THE STATE OF NEW YORKCOUNTY OF NEW YORKFEDERAL HOUSING FINANCE AGENCY,AS CONSERVATOR FOR THE FEDERALNATIONAL MORTGAGE ASSOCIATIONAND THE FEDERAL HOME LOANMORTGAGE CORPORATION,Plaintiff,-against-COUNTRYWIDE FINANCIALCORPORATION; COUNTRYWIDE HOMELOANS, INC.; COUNTRYWIDE CAPITALMARKETS, LLC; COUNTRYWIDESECURITIES CORPORATION; CWALTINC.; CWABS, INC.; CWMBS, INC; BANKOF AMERICA CORPORATION; BANK OFAMERICA, N.A.; NB HOLDINGSCORPORATION; BANC OF AMERICASECURITIES LLC; CITIGROUP GLOBALMARKETS, INC.; DEUTSCHE BANKSECURITIES INC.; RBS SECURITIES, INC.(f/k/a GREENWICH CAPITAL MARKETS,INC.); UBS SECURITIES, LLC; N. JOSHUAADLER; THOMAS H. BOONE; JEFFREY P.GROGIN; RANJIT KRIPALANI;STANFORD KURLAND; THOMAS KEITHMCLAUGHLIN; JENNIFER S. SANDEFUR;ERIC SIERACKI; DAVID A. SPECTOR;Defendants.
Index No. _______COMPLAINTJURY TRIAL DEMANDED
i
TABLE OF CONTENTSPage
NATURE OF ACTION ...................................................................................................................1
PARTIES .........................................................................................................................................9
A.
The Countrywide Defendants ................................................................................10
B.
The Bank of America Defendants..........................................................................11
C.
The Underwriter Defendants ..................................................................................12
D.
The Individual Defendants .....................................................................................14
JURISDICTION AND VENUE ....................................................................................................16
FACTUAL ALLEGATIONS ........................................................................................................17
I.
THE SECURITIZATIONS ................................................................................................17
A.
Residential Mortgage-Backed Securitizations In General .....................................17
B.
The Securitizations At Issue In This Case .............................................................18
C.
The Securitization Process .....................................................................................25
1.
Countrywide Home Loans Groups Mortgage Loans in SpecialPurpose Trusts ............................................................................................25
2.
The Trusts Issue Securities Backed by the Loans ......................................26
II.
THE DEFENDANTS’ PARTICIPATION IN THE SECURITIZATIONPROCESS ..........................................................................................................................32
A.
The Role of Each of the Countrywide, Underwriter, and IndividualDefendants .............................................................................................................32
1.
Countrywide Home Loans .........................................................................32
2.
The Depositor Defendants CWALT, CWABS, and CWMBS ..................34
3.
Countrywide Securities ..............................................................................34
4.
Countrywide Capital Markets ....................................................................35
5.
Countrywide Financial ...............................................................................36
ii6.
The Underwriter Defendants......................................................................36
7.
The Individual Defendants .........................................................................38
B.
The Defendants’ Failure To Conduct Proper Due Diligence .................................39
III.
THE REGISTRATION STATEMENTS AND THE PROSPECTUSSUPPLEMENTS................................................................................................................43
A.
Compliance With Underwriting Guidelines ..........................................................43
B.
Statements Regarding Occupancy Status of Borrower ..........................................48
C.
Statements Regarding Loan-to-Value Ratios .........................................................52
D.
Statements Regarding Credit Ratings ....................................................................56
IV.
FALSITY OF STATEMENTS IN THE REGISTRATION STATEMENTS ANDPROSPECTUS SUPPLEMENTS ......................................................................................58
A.
The Statistical Data Provided in the Prospectus Supplements ConcerningOwner Occupancy and LTV Ratios Was Materially False ....................................58
1.
Owner-Occupancy Data Was Materially False ..........................................59
2.
Loan-to-Value Data Was Materially False ................................................63
B.
Countrywide Systematically Disregarded Its Underwriting Guidelines ................69
1.
Government Investigations Have Confirmed That CountrywideRoutinely Failed to Adhere to Its Underwriting Guidelines ......................70
a.
Investigations and Actions of Federal Authorities .........................70
b.
Admissions in Countrywide’s Internal Reporting andEmails ............................................................................................75
c.
Deposition Testimony of Countrywide’s Top Executives .............78
2.
Actions Brought by State Enforcement Authorities and PrivateLitigants Have Corroborated that Countrywide SystematicallyFailed to Adhere to Its Underwriting Guidelines .......................................81
a.
State Enforcement Actions ............................................................82
b.
Civil Litigation and Settlements ....................................................84
Search History:
Result 00 of 00
00 results for result for
p.
4. Countrywide Capital Markets for Final Country Wide Complaint - Filing Copy
Plaintiff Federal Housing Finance Agency (“FHFA”), as conservator of The Federal
National Mortgage Association (“Fannie Mae”) and The Federal Home Loan Mortgage
Corporation (“Freddie Mac”), by its attorneys, Quinn Emanuel Urquhart & Sullivan, LLP, for its
Complaint herein against Countrywide Financial Corporation
National Mortgage Association (“Fannie Mae”) and The Federal Home Loan Mortgage
Corporation (“Freddie Mac”), by its attorneys, Quinn Emanuel Urquhart & Sullivan, LLP, for its
Complaint herein against Countrywide Financial Corporation
1.2K
Reads
0
Readcasts
0
Embed Views
More From This User
Notes
Load more
