Countrywide Financial Corp., the mortgage lender bought by Bank of America Corp., was sued by Amalgamated Bank, which claims it was defrauded when it bought home equity lines of credit for $212 million.
Amalgamated bought four portfolios of home equity loans, known as HELOCs, from Countrywide between November 2006 and May 2007, according to the lawsuit filed Monday in New York Supreme Court in Manhattan. New York-based Amalgamated alleged that Countrywide used "aggressive and deceptive marketing practices" to lure borrowers who should not have received loans. Assets and income were not verified, nor did Countrywide ensure that borrowers lived in the homes securing their loans, Amalgamated said.
Bank of America, a Charlotte banking company, also was named in the complaint. The company had no comment by press time.