State joins federal mortgage fraud lawsuit

Pamplin Media Group, Jul 14, 2010

Oregon is joining a federal lawsuit in California against Countrywide Financial Corp., saying the company misled local investors into buying risky mortgage-backed securities.

The alleged deceit ultimately cost the Oregon Public Employee Retirement Fund $29 million of the $200 million invested in home loans originated by Countywide.

Oregon Treasurer Ted Wheeler and Attorney General John Kroger said the state would be a plaintiff in the lawsuit with the Iowa Public Employees’ Retirement System (the lead plaintiff in the case), the Oregon Public Employee Retirement System, the General Board of Pension and Health Benefits of the United Methodist Church and the Orange County Employees’ Retirement System.

“Oregon is taking a stand against predatory lenders and the financial wreckage they caused for families and for investors including Oregonians,” Wheeler said.

“Oregon is currently No. 3 nationwide in foreclosures,” said Kroger. “This lawsuit will hold the responsible companies accountable.”

Countrywide and other defendants have not commented on the lawsuit.

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