MN Sues Countrywide Over Appraisals.(Minnesota Department of Commerce, Countrywide Home Loans Inc., Countrywide Home Loans Servicing L.P.)(Brief Article)

Countrywide Home Loans Inc. and Countrywide Home Loans Servicing LP are being sued by the Minnesota Department of Commerce and the Minnesota attorney general's office.

The complaint alleges that they "falsely told homeowners that they must only use an affiliate of Countrywide at prices set by Countrywide when obtaining the appraisal needed to cancel private mortgage insurance."

The complaint also alleges that "Countrywide has also failed to distribute the required notices and attempted to impose other obstacles to PMI cancellation by Minnesota homeowners in violation of Minnesota law."

Bruce Gordon, the spokesperson for the commerce department, said, "The goal of the suit is to ensure that they are in compliance with Minnesota state law in regard to private mortgage insurance."

Mr. Gordon added that the attorney general's office, which is taking the lead in the case, filed the suit on behalf of the department.

Leslie Sandberg, the communications director for the attorney general's office, said consumers brought the issues in the complaint to the attention of the department.

When asked about the number of consumers that might have been affected, Ms. Sandberg responded, "We are in discovery at this point and the total number of consumers is unknown. There is the potential for more consumers to contact us. We are looking at a ballpark (figure of) six years for statute of limitations."