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Countrywide settles states' predatory-lending claims.

Publication: Trial
Publication Date: 01-DEC-08
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Bank of America, which acquired Countrywide Financial Corp. earlier this year, settled predatory-lending claims with 11 state attorneys general in October. The settlement will modify hundreds of thousands of loans to help homeowners avoid foreclosure.

It is the largest predatory-lending settlement in history, according to a statement by Illinois Attorney General Lisa Madigan.

Led by Madigan and California Attorney General Edmund Brown Jr., the states argued that Countrywide deceived borrowers by misrepresenting loan terms, future increases in payments, and borrowers' ability to afford loans. "Countrywide's lending practices turned the American dream into a nightmare for tens of thousands of families by putting them into loans they couldn't...

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