Wisconsin Attorney General J.B. Van Hollen has reached a settlement with Countrywide Financial Corp. According to the attorney general's office, the arrangement will provide loan modification eligibility and over $41.1 million in other economic relief for Wisconsin borrowers.
Countrywide has agreed to provide affordable, streamlined loan modification offers to over 2,900 eligible borrowers with subprime and pay option adjustable-rate mortgage borrowers; more than $1.6 million in foreclosure relief benefits for Wisconsin consumers; and waivers of default/delinquency fees, loan modification fees and prepayment penalties.
The settlement followed an investigation into – among other issues – the marketing practices of Countrywide. Wisconsin and other states investigating the company alleged that Countrywide misrepresented the quality and benefits of its products. A portion of the settlement money will be used for foreclosure mitigation programs.Â
SOURCE: Office Of Wisconsin Attorney General J.B. Van Hollen