Editing Jerry Brown (section)

=== Mortgage fraud lawsuit ===

In June 2008, Brown filed a fraud lawsuit claiming mortgage lender [[Countrywide Financial]] engaged in "unfair and deceptive" practices to get homeowners to apply for risky mortgages far beyond their means.<ref>{{cite news |url=https://www.chicagotribune.com/business/chi-mortgage_suit_25jun25,0,3774900.story |archive-url=https://web.archive.org/web/20221111010105/https://www.chicagotribune.com/business/chi-mortgage_suit_25jun25,0,3774900.story |url-status=dead |archive-date=November 11, 2022 |title=State's suit to target mortgage lender for unfair practices |work=Chicago Tribune |date=June 25, 2008 |access-date=June 25, 2008 }}</ref><ref>{{cite news |url=https://www.chicagotribune.com/business/sns-ap-countrywide-illinois-lawsuit,0,4219028.story |title=Illinois AG sues Countrywide over lending practices |agency=Associated Press |date=June 25, 2008 |access-date=June 25, 2008 |work=Chicago Tribune |url-status=dead |archive-url=https://web.archive.org/web/20080628162101/http://www.chicagotribune.com/business/sns-ap-countrywide-illinois-lawsuit%2C0%2C4219028.story |archive-date=June 28, 2008 |df=mdy-all}}</ref> Brown accused the lender of breaking the state's laws against [[false advertising]] and unfair business practices. The lawsuit also claimed the defendant misled many consumers by misinforming them about the workings of certain mortgages such as adjustable-rate mortgages, [[interest-only loan]]s, low-documentation loans and home-equity loans while telling borrowers they would be able to [[refinance]] before the interest rate on their loans adjusted.<ref>{{cite news |url=https://money.cnn.com/2008/06/25/real_estate/countrywide_california.ap/index.htm?section=money_latest |title=California sues Countrywide |publisher=CNN Money.com |date=June 25, 2008 |access-date=June 25, 2008}} {{Dead link|date=August 2012|bot=RjwilmsiBot}}</ref> The suit was settled in October 2008 after [[Bank of America]] acquired Countrywide. The settlement involved the modifying of troubled 'predatory loans' up to $8.4 billion.<ref>{{cite web|url=https://www.nbcnews.com/id/wbna27050659 |title=BofA to pay $8 billion over subprime suit |work=NBC News |date=October 6, 2008 |access-date=November 18, 2010}}</ref>