Bank of America Settles Suit Over Acquired Predatory Mortgages
|Written by Jamie Simpson|
|Last Updated October 7, 2008|
Bank of America, which acquired Countrywide in July 2008, has settled a multi-state lawsuit to help aid troubled homeowners. The record-setting $8.68 billion settlement will disperse $3.5 billion to California borrowers and $190 million in Illinois beginning in December.
The lawsuit stemmed from the predatory lending practices of Countrywide, putting high-risk borrowers in homes they couldn't really afford. States included in the settlement include Arizona, California, Connecticut, Florida, Iowa, Michigan, North Carolina, Ohio, Texas, and Washington. The settlement will enable troubled borrowers to obtain a modified and affordable loan, waiver of late and prepayment penalties, and suspension of foreclosures.
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