Countrywide and Florida Attorney General Bill McCollum have reached a settlement of the wide-ranging fraud claims filed by the state earlier this year. The details remain to be worked out, but here are several key features to the settlement that could benefit more than 50,000 Florida homeowners with a Countrywide loan.
Cash payments
Floridians who have lost their homes due to some of Countrywide’s challenged practices may be eligible for cash payments in compensation. Up to $20 million may go to Florida’s former homeowners.
Late fee waivers
Countrywide borrowers who were assessed late fees due to improperly-written loans may be eligible for waivers of those fees. Up to $4 million has been set aside to benefit Florida homeowners with late-fee waivers.
Loan modification and foreclosure abatement
The most important feature of the settlement is the prospect of modifying the loans of qualified Countrywide borrowers, converting adjustable-rate loans into fixed-rate loans with more affordable interest rates, using HUD income-to-debt ratio guidelines. Countrywide has also agreed to hold off on filing or pursuing foreclosure against any borrowers who might qualify for relief.
Toll-free Countrywide hotline
Not all homeowners will qualify, so keep an eye out for more details as they develop. Countrywide has a toll free hotline for those who want more information: 1-800-669-6607.
UPDATE
I’ve been getting reports from people who are trying to call the hotline that they get transferred, hung up on, and otherwise ignored. This has been reproted to the attorney general’s office.
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