Oregon is joining a national class-action lawsuit that accuses Countrywide Financial Corp. of violating securities law by making false statements to investors, including the state's investment fund managers.
The Oregon Public Employees Retirement System lost $29 million in the real estate meltdown after investing in Countrywide home loans.
Countrywide and its financial underwriters told state fund managers and other investors that the mortgage loans contained in its investment funds were all top-notch, according to the lawsuit.
It turned out that the company had not been consistently evaluating homebuyers to see whether they had good credit and would be able to make their mortgage payments, the lawsuit alleges. Countrywide also had not been performing adequate appraisals to make sure property values lined up with the amount being lent.
Read more at StatesmanJournal.com.