A settlement with California-based Countrywide Financial Company means the firm will provide 3.5 billion dollars in relief for Californians at risk of losing their homes.
Countrywide will setaside more than 8.5 billion dollars for its customers across the country who entered sub-prime or adjusted rate loans.
Roughly half of that money is coming back to California homeowners who are behind in their mortgage payments or on the cusp of foreclosure.
California Mortgage Association spokesman John Holmgren says he’s glad the settlement requires Countrywide to help borrowers…
“Many of the institutions that made these types of loan products have not been as cooperative as one might have hoped in working with consumers to work out payment plans and loan modification terms that would have enabled people to stay in their homes…”
State Attorney General Jerry Brown helped negotiate the settlement.
He says Countrywide customers who got mortgages between 2004 and the end of 2007 are eligible.
The settlement comes as Bank of America is purchasing Countrywide.