Countrywide Will Pay $108 Million for Overcharging Struggling Homeowners in Foreclosure Actions; Loan Servicer Inflated Fees, Hired Subsidiaries Instead of Bidding Out Work, and Mishandled Loans of Borrowers in Bankruptcy. This is a Violation of RESPA 8a & 8b.
Two Countrywide mortgage servicing companies will pay $108 million to settle Federal Trade Commission allegations that they collected excessive fees from cash-strapped borrowers who were struggling to keep their homes. $108 million is one of the largest judgments imposed in an FTC case, so far, the largest mortgage servicing case,(however their are plenty in the pipeline). The judgment is suppose to be used to reimburse overcharged homeowners whose loans were serviced by Countrywide before it was acquired by Bank of America in July 2008, watch the money people get yours now. (Ask your attorney to amend your defense and claim a sett-off making your late mortgage current and modify your loan as a settlement).
“Life is hard enough for homeowners who are having trouble paying their mortgage. To have a any loan servicer like Countrywide piling on illegal and excessive fees is indefensible,” said FTC Chairman Jon Leibowitz. “We’re very pleased that homeowners will be reimbursed as a result of our settlement.”
According to the complaint filed by the FTC, Countrywide’s loan-servicing operation deceived homeowners who were behind on their mortgage payments into paying inflated fees – fees that could add up to hundreds or even thousands of dollars. Many of the homeowners had taken out loans originated or funded by Countrywide’s lending arm, including subprime or “nontraditional” mortgages such as payment option adjustable rate mortgages, interest-only mortgages, and loans made with little or no income or asset documentation, the complaint states. You must read the full story and bring this story to your lawyers attention, could open new defenses and settlement strategy.