Calif. Court Renews ARM Suit Against Countrywide, AmNet

Law360, Washington (October 12, 2012, 4:42 PM EDT) -- A California appeals court on Thursday revived a suit claiming American Mortgage Network Inc.'s and Countrywide Financial Corp.'s option adjustable rate mortgages were deceptive and hid key financial terms from customers, saying loan documents support the allegations and the case should move forward.

Three individual borrowers sued the mortgage loan companies, saying they hadn't been properly informed that making minimum payments alone wouldn't even cover the accrued interest on their mortgages, causing their loan sizes to increase over time.

The loans, the borrowers say, also included...
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