Former U.S. Mortgage lender settles $150 million Pennsylvania lawsuit

2009-01-31 16:54:15 (GMT) (JusticeNewsFlash.com - Business Litigation, Justice News Flash)

Wiki Image:Countrywide settles $150 million Pennsylvania homeowner lawsuit

Countrywide Financial Corp agrees to $150 million cash relief for Penn. Homeowners. JusticeNewsFlash.com top news for San Francisco lawyers.

San Francisco, CA (JusticeNewsFlash.com)–Countrywide Financial Corp., once the nation’s largest mortgage lender and now part of Bank of America Corp., agreed to a $150 million dollar settlement. According to Reuters, state officials in Pennsylvania brought the lawsuit against Countrywide Financial Corp., because the mortgage giant allegedly sold risky loans to consumers, who could not afford them and did not understand the loan agreements they were signing.

The Pennsylvania Attorney General Tom Corbett claims the settlement agreement may bring relief to as many as 10,200 loan holders who unknowingly participated in some of the riskiest and highest defaulting loans written by Countrywide.

The lawsuit was filed after Pennsylvania officials investigated Countrywide and loans originated by Countrywide Financial Corp., Countrywide Home Loans Inc., and Full Spectrum Lending Inc. The state found unfair business practices involving innocent consumers. The $150 million settlement may provide mortgage relief and cash assistance for Pennsylvania homeowners by providing them with loan modifications, relocation assistance and foreclosure relief. The Pennsylvania Attorney General also said the settlement may also provide waivers of default or delinquency fees for struggling borrowers.

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