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$108 Million in Checks are being sent out to former Countrywide borrowers

Countrywide Home Loans Seattle Real Estate Agent

Former Countrywide borrowers finally getting paid

An article from Agent Genius reported that former countrywide borrowers are finally being reimbursed. Nearly 500,000 will soon receive checks after the Federal Trade Commission found (over 3 years ago) that Countrywide Financial overcharged hundreds of thousands of borrowers.

It should be noted that these borrowers were overcharged by Countrywide Financial prior to being acquired by Bank of America.

According to the FTC, Countrywide used unlawful practices in servicing homeowners’ mortgages. Countrywide allegedly charged excessive fees for default-related services like property inspections, made claims about amounts owed by homeowners in bankruptcy that were false or couldn’t be backed up. They also allegedly didn’t tell people going through bankruptcy when new fees or charges were being added to their loans.

“It’s astonishing that a single company could be responsible for overcharging more than 450,000 homeowners,” FTC Chairman Jon Leibowitz said in a statement. “Countrywide’s unconscionable behavior harmed American consumers on a massive scale and we are proud to be getting every single dollar back to hundreds of thousands of struggling consumers who can least afford to lose the money.”

There were two categories of overcharges, according to FTC spokesperson Frank Dorman that were tied to inspections, home maintenance, lawn mowing and other services that Countrywide provided to homes of borrowers in default.

The checks will begin going out to overcharged borrowers on July 21st with no word as to how long until all borrowers will be reimbursed. Gilardi & Co. is charged with this program and are administering the settlement for the FTC. Borrowers with questions can reach them at 888-230-3196 or ftcvcountrywide@classactmail.com.

Read entire article from AG here


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