Jiagbogu

FACTS AND PROCEDURAL BACKGROUND

In 2003, plaintiff purchased a residence in Mission Viejo with a $990,000 loan from Long Beach Mortgage Company, secured by a deed of trust on the property. The loan provided for an initial fixed rate of interest that would change to an adjustable rate after two years. The next year, plaintiff refinanced the home, obtaining an adjustable rate loan for over $1.3 million from Washington Mutual Bank. Several months later, he borrowed an additional $364,000 from Countrywide Home Loans, Inc. (Countrywide), secured by a second deed of trust on the property. Countrywide was later acquired by defendant. Plaintiff claimed he once again went to a Countrywide office in 2005, seeking to refinance the loans secured by his home. He met with Tim Doherty, the branch manager, and John Omen, an employee. Plaintiff claimed Doherty and Omen urged him to refinance the property with an option adjustable rate mortgage (option- ARM) loan. They said it could reduce his monthly payments and save him money in interest payments over the life of the loan. Omen represented the monthly payments on a fixed interest rate loan would amount to $11,000, whereas an option-ARM loan’s…