Rosenfeld Injury Lawyers LLC help people injured in Chicago car accidents by drivers who are insured with Countywide Financial Corporation. Before you talking to adjuster from Countrywide, we encourage you to speak to one of our attorneys who can advise you how to protect your legal rights. Our law firm has successfully resolved Illinois auto accident claims with insurance carriers including Countrywide. Contact our office for a free case review.
The white-collar and blue-collar founders (Angelo R. Mozilo and David Loeb) of Countywide Financial Corporation quickly rose the company to the top of American insurers over the decades since it was first launched. Countywide amassed billions of dollars in assets and revenue, tens of thousands of employees, and hundreds of offices in the US. Since the early 2000s, the company has aggressively marketed and mortgaged homes for millions of Americans, many who were poorly qualified to maintain a home mortgage.
Countrywide once accounted for nearly one in five of all mortgaged homes in the United States, which was almost five percent (5%) of the nation’s GDP (gross domestic product). Thus, because the company relied heavily on profitable home mortgages as a source of income that was greatly impacted by the massive collapse and recession around 2007-2008, Countrywide fell rapidly into financial distress. To save bankers, mortgage lenders, and mortgage holders, Bank of America purchased Countrywide for more than $4 billion in 2008, transferring accounts from Countrywide to Bank of America (BofA) Home Loans.
Products and Services Offered by Countrywide
- Generating billions of dollars in annual revenue, BofA Home Loans continues to offer numerous products and services through various main streams of income.
- Mortgage Banking: Through the acquisition of Countrywide Financial Corporation, Bank of America Home Loans secured and maintained one of the largest mortgage businesses in the world. The bank continues to offer to finance individuals and families who want to buy a home with less than perfect qualifications. In exchange requiring a low down payment, BofA Home Loans requires borrowers to purchase mortgage insurance to cover the amount of debt unprotected my a traditional home loan.
- Insurance: BofA Home Loans also underwrites policies to millions of individuals, families, and companies. These policies involve casualty, life, and residential and commercial property insurance.
- Financial Services: BofA Home Loans also provides a multitude of general financial services, including but not limited to loan production, loan servicing, and loan closings.
- The summary below lists reviews of litigation against Countrywide and its successor, Bank of America Home Loans, since 2005.
Litigation Against Bank of America Home Loans (Countrywide Financial)
A relatively small percentage of litigated cases the litigation against Bank of America Home Loans (the successor to Countrywide Financial) involve corporate lending, fraud, disclosure, and other transactional issues. accounting for almost twenty-five percent (25%) of all cases. The largest group of litigated cases (roughly 16) against Bank of America Home Loan involved real property issues including homes, foreclosure and other mortgage issues. Since 2005, less than 10% of cases involved only insurance issues. A review of some of these representative cases include:
Mike Hjalmarson v. Bank of America, N.A.: In this Texas case, the plaintiff brought an action on behalf of his deceased sister, claiming that, through her, he was entitled to collect on her life insurance policy. Bank of America responded that she had failed to pay several premium payments and, thus, the estate was unable to receive the benefit of the plan. The plaintiff responded by arguing that Bank of America waived this provision by failing to terminate the policy. The court found no such implied waiver and ruled in favor of Bank of America.
Lynda Sacks v. Countrywide Insurance: In this California case, the plaintiff sought to collect on disability insurance because she developed a progressive disease that resulted in immobility and an inability to focus. Countrywide denied her coverage because it said that her primary occupation was not in jeopardy due to her permanent sedentary status. To this, the plaintiff claimed that Countrywide’s interpretation of boilerplate language in her plan violated Employee Retirement Income Security Act of 1974 (ERISA) and that she should be barred from benefits as a result. The court agreed and found that a plain reading of her plan should, combined with the nature of her injury, allow her to collect under the policy.
Hagendorf v. Countrywide: In this case, the plaintiff tried to remove money out of escrow after starting the process of purchasing a home because he believed the amount of his taxes and home insurance premiums was higher than initially suggested. This was a fact-intensive matter involved a jury that analyzed representations made during settlement negotiations and "he said, she said" arguments. The weight of persuasion was tilted against the plaintiff because Countrywide presented stronger facts. In the end, the jury found for Countrywide.
Countrywide and Bank of America have been highly successful at winning cases filed against them. More than half of all plaintiffs since 2005 have received nothing or compensation less than one hundred thousand dollars ($100,000.00). Approximately a quarter filed suits and claims have been resolved with a settlement or award between one hundred thousand dollars ($100,000.00) and one million dollars ($1,000,000.00). The remaining, about fifteen percent (15%) of plaintiffs, recovered more than one million dollars ($1,000,000.00).
Let Rosenfeld Injury Lawyers LLC Assist You With a Claim Involving Countrywide Financial
These low settlement and jury award figures from resolved cases against Countrywide and Bank of America are not surprising. The number one goal of all insurance companies if profits that can be generated by keeping monetary compensation payouts low. Further, most victims do not have the time to master the intricacies of insurance tort law or the policy's fine print. Many injured or damaged claimants seeking recompense choose to accept settlement amounts lower than what their case deserves. However, with the team at Rosenfeld Injury Lawyers LLC on your side, you can be assured that you receive adequate financial compensation after your an accident. Our law firm is experienced and qualified to handle your claims. Contact us today to hear about what we can do for you to guarantee you receive justice! We offer a "No Win/No Fee" guarantee.