Breaking Legal News - POSTED: 2009/08/21 13:46
A judge has rejected mortgage lender Countrywide Financial's effort to have some investor lawsuits heard in federal court.
Judge Richard Holwell in Manhattan concluded in a decision released Tuesday that Congress did not intend for a federal court to hear a dispute over the mortgage lender's promise to buy back modified loans from investors. He returned the case to state court.
Holwell wrote that it was tempting to find federal jurisdiction every time a multibillion dollar case with national implications arrives at the court's doorstep. But he said the decision is ultimately left up to Congress.
Holders of mortgage-backed securities sued Countrywide in December. Shirley Norton, a spokeswoman for Bank of America Corp., Countrywide's parent company, said the company will appeal the decision.