Daily News and Information for the Mortgage Loan Originator
Countrywide Whistleblower Sues for Unjust Firing
Monday, February 04, 2008
- By Staff Writer, Originator Times
HOUSTON, TX - Countrywide KB Home Loans is being sued by a former high-level employee who claims he was unjustly fired after complaining to his superiors about what he thought were unscrupulous lending practices that were harmful to borrowers.
Mark Zachary was a regional vice president and manager in the Houston division of the Countrywide Financial Corp and home builder KB Home joint venture, Countrywide KB Home Loans. Zachary, who joined the company in August of 2006, was fired in the late spring of 2007. Zachary says he was given a positive performance review in February of 2007 and then fired three months later after reporting that some employees were advising customers to document false income amounts to receive no doc loans. Zachary also reported practices of “strongly advising” appraisers to inflate property values so loans would close.
In addition to reporting these practices to Countrywide executives, Zachary also filed a complaint with the U.S. Department of Labor.
Countrywide said they have investigated the allegations and have found no merit to Zachary’s lawsuit. The company denies the charges and said in an issued statement, "Countrywide stands behind its systems and processes and will defend this case vigorously."
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