Thursday, January 22, 2009
Breaking News / Law and Order Countrywide Settles with Tennessee, Agrees to Halt Its Devotion to Evil
Posted by Pete Kotz on Thu, Jan 22, 2009 at 5:19 PM
WRCB TV in Chattanooga is reporting that Countrywide, the nation's largest predatory lender and general purveyor of evil, has agreed to settle complaints from Tennessee concerning its widespread screwing of our fair citizenry:
Tennessee Attorney General Bob Cooper says the state has settled on complaints of predatory lending with Countrywide, the nation's largest mortgage lender. The judgment will provide loan modification for an estimated 6,900 Tennessee borrowers and an estimated $4 million in relief to troubled Tennessee borrowers.
If you have a Countrywide mortgage, more details on the remedy come after the jump."We are pleased that this agreement can bring relief to eligible Countrywide borrowers who are on the brink of losing their homes or to some who have already lost their homes," said Attorney General Cooper. "We also hope this case will be a warning to those unscrupulous lenders who would mislead consumers into committing to loans they ultimately could not afford.
Countywide consumers can also call Countrywide toll-free at (800) 669-6607 to find out if they are eligible for a loan modification or other programs. Several attorneys general negotiated with Bank of America, which acquired Countrywide, to reach settlements in each state. Countrywide allegedly deceived borrowers by misrepresenting loan terms, loan payments increases and the borrower's ability to afford loans.
The settlement will allow some borrowers to avoid foreclosure by obtaining a modified and affordable loan. The loans covered by the settlement are among the riskiest and highest defaulting loans in the foreclosure crisis.
- Refrain from offering certain subprime loans.
- Help homeowners through an estimated $1,049,555 in a relocation assistance program, which will provide payments to homeowners who cannot qualify for a loan modification.
- Establish a foreclosure relief fund worth an estimated $2,427,512 for payments to certain eligible Tennessee borrowers who have already lost their homes to foreclosure
- Waive prepayment penalties of up to $194,989 and up to $642,288 in default/delinquency fees for Tennessee homeowners.
The Attorney General encourages those who think they may be eligible to contact Countrywide directly at (800) 669-6607 or, if they need assistance in evaluating their situation, a network of free certified foreclosure counselors is available to help consumers who are facing foreclosure in Tennessee by calling 2-1-1 or going online.
Consumers who wish to file complaints against Countrywide or regarding any other consumer issue can contact the Division of Consumer Affairs by going online or calling (615) 741-4737 or toll-free in Tennessee at 1-800-342-8385.
The State's lawsuit, settlement and a list of frequently asked questions may be viewed by going online.
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