Countrywide Admits to Public Relations Lies

In court, Countrywide says its ads are ‘puffery’

Defending lawsuit, mortgage company mocks loan modification assurances

In marketing, advertising and testimony before Congress, Countrywide Home Loans has said repeatedly that it is working hard to modify the mortgages of financially strapped borrowers caught up in the subprime meltdown. But in a New Hampshire court, attorneys for the lending giant are singing a different tune, describing such assurances as “mere commercial puffery.”

Saying the modification offers are “only Countrywide’s vague advertisements,” attorneys for the lender are asking the court to throw out a lawsuit alleging breach of good faith, fraud, negligence and misrepresentation, which was filed on behalf of a family that was refused a loan modification by the California-based company.

This is an unbelievable moment of honesty on the part of Countrywide. I have known for a long time that much of the "media hype" out there regarding what lenders are doing to help at risk borrowers was nothing more than an attempt to garner good favor through their public relations front men. The only way to fix this mess is with a moratorium on foreclosures that would extend for 12 - 18 months. Once that is in place lenders would have no choice but to modify bad loans to get income from these assets.

Stay tuned... More to come

Full article here: http://www.msnbc.msn.com/id/28645505/