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San Diego City Attorney sues Wachovia

By Legal News Line | Oct 15, 2008

Mike Aguirre

SAN DIEGO (Legal Newsline)-Following lawsuits against Countrywide Financial Corp. and Washington Mutual, San Diego City Attorney Mike Aguirre filed a suit on Tuesday taking on a third home mortgage lender for its alleged predatory lending practices.

The latest suit, filed in the San Diego Superior Court is against Wachovia, parent company of Golden West Financial Corp., which the bank bought in October, 2006.

The lawsuit asserts that Golden West sold loans without proper consideration or verification of a buyer's ability to pay, including selling risky loans that would have rapidly escalating payments.

Aguirre was the first city attorney to sue Countrywide Financial Corp, the California-based mortgage giant that has been sued by several state attorneys general. Countrywide was purchased by Bank of America in July.

He followed that lawsuit with a lawsuit last week against Washington Mutual, also for its predatory lending practices.

Washington Mutual was recently purchased by JP Morgan/Chase, in the fast-moving bank shuffle that has resulted from the mortgage crisis, which has shaken the American economy.

Wells Fargo purchased Wachovia in a tentative deal reached just this week, and presumably, will handle the negotiations related to the lawsuit.

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