Bryce Elder pointed us to a fascinating story over at MSNBC.com, which details Countrywide’s own lawyers mocking its loan modification offers as “mere commercial puffery”:
In marketing, advertising and testimony before Congress, Countrywide Home Loans has said repeatedly that it is working hard to modify the mortgages of financially strapped borrowers caught up in the subprime meltdown. But in a New Hampshire court, attorneys for the lending giant are singing a different tune, describing such assurances as “mere commercial puffery.”
Saying the modification offers are “only Countrywide’s vague advertisements,” attorneys for the lender are asking the court to throw out a lawsuit alleging breach of good faith, fraud, negligence and misrepresentation, which was filed on behalf of a family that was refused a loan modification by the California-based company.
In claiming “puffery,” which law dictionaries define as a statement of opinion rather than fact, Countrywide cited “terms that do not set forth concrete representation as to the company’s future performance.”
Gobsmacking.
Countrywide is, of course, a prominent member of the Hope Now Alliance, which is – to quote a CFC press release – an “effort designed to help families avoid foreclosure”.
As for all those Countrywide commercials trumpeting no cost REFIs – not so much, then.
Related links:
Bid to ease mortgage pain intensifies – FT
BofA in mortgage lender settlement – FT
MBIA sues Countrywide – FT