Countrywide Makes Restitution
by: Jim Bell, July 27, 2009 9:07:15 pm
Countrywide Mortgage got in trouble last year for knowingly writing loans for unqualified borrowers and for not telling borrowers about the risky terms of the loans. The company agreed to a 345 million dollar settlement that includes restitution, relocation assistance, and mortgage modification A-G spokesman Dirk Fillpot says about seven and a half million of the settlement will go for restitution to a specific group of borrowers.
"This program is specifically set aside for Countrywide customers whose loans originated between January 1, 2004 and December 31st of 2007, and those customers who lost their homes to foreclosure."
Fillpot says about 1400 Texans now in default, or likely to be in default on their subprime mortgages, will be allowed to surrender their residence and get up to two thousand dollars to help them relocate. The rest of the settlement, 335 million dollars, will be used to modify loans for as many as 30 thousand Texans.
"Through this program eligible homeowners can modify the terms of their loans so that monthly mortgage payments are more affordable."
Filpot says only people who get a claim form in the mail from Countrywide are eligible for restitution, and the amount each person gets will depend on the total number of people who make a claim. Jim Bell, KUHF, Houston Public Radio News.