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Thursday, Mar 28, 2024

Countrywide to pay $8.4 billion to homeowners

Homeowners with subprime and “pay-option” adjustable-rate mortgages from Countrywide Home Loans may be able to escape foreclosure and get their loan payments or debts reduced under an $8.4 billion settlement between 11 states and Bank of America Corp., which purchased Countrywide earlier this year. Facing lawsuits over what were called deceptive Countrywide practices that misrepresented loan terms, loan payment increases, and borrowers’ ability to afford loans, Bank of America agreed to pay more than $8 billion to modify hundreds of thousands of loans to keep people from losing their homes. “With this settlement, homeowners will receive direct relief from the catastrophic damage caused by Countrywide,” California Attorney General Edmund G. Brown Jr. said in an announcement Monday. “Countrywide’s lending practices turned the American dream into a nightmare for tens of thousands of families by putting them into loans they couldn’t understand and ultimately couldn’t afford.” For full story visit: www.avpress.com/n/07/1007_s3.hts

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