Countrywide is the target of a multimillion dollar, class-action lawsuit in which it has been accused of charging for legal documents that were allegedly prepared by non-legal staff and were reviewed by a Houston law firm, but not by lawyers.

U.S. District Judge David Hittner said, "It is undisputed that the final set of legal instruments is prepared by a nonlawyer Countrywide employee at a Countrywide storefront." Hittner's order also stated that documents were often reviewed only by nonlawyers at the law firm.

According to an article in the Houston Chronicle, the lawsuit may involve more than 50,000 Texans who bought their homes with a Countrywide mortgage since Jan. 10, 1996. Most homeowners, who paid $175 for the legal documents, could be eligible for about $700 in damages.

Published: September 10, 2001

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