A Countrywide Settlement

Bank of America has agreed to settle a deceptive mortgage practices lawsuit on behalf of its relatively new subsidiary, Countrywide Financial, the notoriously aggressive mortgage lender.  The attorneys general of Illinois and California negotiated the settlement on behalf of their states and at least nine others. The settlement will cost BOA approximately $3.5 billion in California and $190 million in Illinois. The settlement funds will go towards reducing payments for Countrywide borrowers with subprime and/or adjustable-rate mortgages, waiving prepayment and late fees, paying damages to customers who have already lost their homes, and subsidizing the relocation of those who are now in foreclosure.

A BOA spokesperson said that the bank plans to introduce the program in December. Hopefully more details about who will qualify will be available soon.

Comments

[Tyler]

Its a funny subject as to who the finger should be pointed. I feel its half us and half them. Us being the public. I actually worked for Countrywide and I must say that the sales tactics used regarding financial responsibility was quite the paradox. We take un-suspecting home owners and emphasize how much money they 'made'(all appreciated, ghost figures) and to use some of it. Ask them questions about their dream vacation, financial hardships, that remodel they've always wanted to do, sending kids to school... so many hot buttons (personal) to take advantage of. The solution of course is a low monthly payment (for a few months) and to use the 'rest' of the savings toward the principle.... riiiiight. I probably funded over a 600k in loans a month for 5 years and I have to say.. when the market turned... the rest is history.

As an ex mortgage broker, I can tell you they were approving garbage. Moreover, we were trained to talk them OUT OF BEING FINANCIALLY RESPONSIBLE. When we heard an excuse like, "its more than we can afford" - you break out your calculator and MAKE IT FIT and say "ta-dah!" and look like a hero for a day or two,... getting all their friends to do the same... of course these people become your lynch mob afterward :)

I personally hand wrote letters to ALL of my clients. over 300 in 5 years. Yeah, it sucked, but apologized on behalf of the industry, and that even us crooked mortgage brokers felt bad. Probably cause we're all out of a job :)

Their bailout program is ridiculous, in the eyes of responsible Americans. I stopped paying my mortgages in March of this year and my reward? - they're cutting my principle, lowering my rate,... making the loan 'fit' into my new small budget.

I don't see this kind of relief for those not deliquent... those that are draining their savings to save their credit, working the extra hours.

Half the country is getting a principle reduction>? that isn't fair. yeaaaah,... its the bad half too.

So let me get this right... I took out a loan I could not afford... SPENT THE MONEY, had a jolly old time in Vegas and taking Vacations... and the people of this Country are bailing us out. This is BS. Worst of all,... its all going to the people that never deserved the loan in the first place!

Anyway, they put me in the program BEFORE today so its all lies if they tell you they have no idea whats going on. The only qualification is that you have a JOB. THATS IT. I actually worked there originating loans as a Countrywide Employee.

I can't even express how bad it makes someone like me (good moral character) feel when the "big guys" (our bosses) led us astray burning family and friends,... exploited our trust with them and have broken many relationships.
I was the idiot that believed in Countrywide. How wrong I was, and how sad that all the qualified borrowers cannot get a penny while all the UNqualified borrowers get a break since our loans are toxic. lol....

Well,.. i gladly accept your money and will put it to horrible use. I promise. Thats what the gov wants right? 0- us to spend spend spend.

I'm moving...

[Joanna]

Has anyone tried calling back since Dec 1st? I'm there with all of you guys - started calling Countrywide in Feb 2008 to try to fix my subprime, option loan, with a house now worth 100,000 less than what I paid for it. I had to stop making payments for them to even notice me (same as another commentor "you haven't missed any payments so what's the problem?) Give me a break! They gave me the total runaround, no one will talk to me, I'm at my wits end, and would like to know who really qualifies for any of this so-called help...

[Lynn Lozzio]

I live in Alaska and am also being screwed by Countrywide not only did they mess with my loan making it impossible but they came into my home while I was in the process of moving out and changed my locks, threw out personal items including pictures of my kids when they were small and things they made but they also tore a shed off the back of my house. Unfortunately I can't find any legal help in Alaska because it wouldn't net the lawyers enough money. Any suggestions on what can be done?