Countrywide is in a heap of trouble

According to CNN Money:
The Attorney General of Illinois is expected to sue Countrywide Financial. The state says that the lender used "deceptive" lending practices to sell risky loans.

I feel that the entire industry has suffered from the tactics used by Wall Street, and large lenders like Countrywide, who came up with programs that allowed people who had no business buying property to become property owners, and then selling these mortgage backed securities to the investors out there, like the pension funds, hedge funds, and others who were looking for great yields on stable investments.

Unfortunately, these same end investors are the ones who bought jumbo loans (above $417,000) and FNMA and FHLMC paper. Now they are gun shy, and you really can't blame them as they were duped into believing that the mortgage backed securities were indeed secured with stable real estate values. That is why the lenders are now dissecting every loan that is submitted to make sure that the borrowers have the four C's of lending;
Capacity, Credit, Capital and Collateral.

Just like the old days when I first started lending in 1984!