Countrywide Sending 16.9 Million Dollars to Florida Homeowners

GSIG LLC

Restitution is finally coming for distressed homeowners merely 16 months after Countrywide Financial reached an agreement with the Florida attorney general’s office to settle one of the biggest predatory lending lawsuits in the nation’s history. More than 2,700 Countrywide borrowers in the Sunshine State are being sent foreclosure relief payments from the lender that now goes by the name Bank of America Home Loans

More than $16.9 million will be distributed this week, and each check will be written for just over $6,000. According to Florida Attorney General Bill McCollum: “these checks will make a significant difference for Floridians who are trying to save their homes. This will provide real relief to struggling homeowners and families.”

In July 2008, McCollum filed a lawsuit against Countrywide – then one of the nation’s largest mortgage companies – for allegedly engaging in deceptive and unfair trade practices. The lawsuit claimed Countrywide put borrowers into mortgages they couldn’t afford. That case was resolved in October 2008, and the settlement agreement included a foreclosure relief payment program for Florida homeowners with qualifying Countrywide mortgages.

In addition to the $16.9 million in payouts to borrowers, the attorney general also obtained $4 million to fund a statewide foreclosure assistance program.

Countrywide’s former chief executive, Angelo Mozilo, was also named in the suit and the civil case against him is still pending in Broward County Circuit Court. The attorney general has also called on Bank of America, which acquired Countrywide after the lawsuit had been filed, to be more responsive to consumers who are trying to modify their loans and save their homes from foreclosure.