Countrywide, sued by California Attorney General Jerry Brown for "unfair business practices" and "false advertising" was making high cost mortgages "to homeowners with weak credit, adjustable rate mortgages (ARMs) that allowed homeowners to make interest-only payments". When housing prices decreased, homeowners in ARMs then had little incentive to pay their monthly payments, since their home equity had disappeared. This caused Countrywide's financial condition to deteriorate, ultimately resulting in a decision by the Office of Thrift Supervision to seize the lender. COUNT 5
QSN1 Who sued Countrywide for unfair business practices and false advertising? ANS1 California Attorney General Jerry Brown QSN2 What type mortgages allowed homeowners to make interest-only payments? ANS2 adjustable rate mortgages (ARMs) QSN3 What happened to home equity when housing prices decreased? ANS3 disappeared QSN4 Who made the decision to seize Countrywide after their financial condition deteriorated? ANS4 Office of Thrift Supervision QSN5 What type credit did borrowers obtaining mortgages from Countrywide have? ANS5 weak credit