Countrywide Financial Corporation, which is owned by Bank of America, has entered into a settlement that will direct more than $1.1 million to borrowers in Louisiana who argue they were put in unfair and unaffordable home loans. Attorney General Buddy Caldwell says Louisiana partnered with 39 other states to push a case alleging Countrywide used deceptive tactics in its loan-origination and servicing operations. In all, Bank of America has set aside $150 million to assist homeowners nationwide who ended up in foreclosure.
In Louisiana, the money could hit the streets as soon as the first quarter of 2010. While the process is still playing out, many states have announced an average award in the neighborhood of $2,000 or more. Eligible borrowers here should have received a letter about two weeks ago detailing the settlement, Caldwell says. Bank of America will also be offering additional relief to other eligible borrowers, he says, such as loan modifications and relocation assistance.
Eligible borrowers who receive a notice package to participate in the program may obtain additional information from the settlement administrator, Rust Consulting, at (866) 411-6987. For more information on the settlement, please visit countrywidesettlementinfo.com.—Jeremy Alford
