BofA Modifies 64,000 Home Loans as Part of Predatory Lending Settlement
After having settled predatory lending charges with 42 states, Bank of America has modified more than 64,000 home loans worth $823.5 million in principal and interest savings, with the intention of modifying loans and reducing interest rates for up to 100,300 borrowers, according to Bloomberg (“Bank of America Revises 64,000 Loans After Pact With States,” May 25, 2009).
The modifications, completed between December 2008 and March 2009, were part of an agreement with state attorneys general in California and Florida, among other states, over charges of predatory lending against Countrywide Financial Corp., which Bank of America acquired in July of last year.
The charges against Countrywide came in October after Bank of America had already taken over the country’s formerly largest home lender, resulting in a settlement that could ultimately end up saving almost 400,000 homeowners as much as $8.4 billion.
The settlement targeted subprime loans — typically offered to homeowners with the weakest credit — and adjustable rate mortgages, which allowed homeowners to make interest-only payments and defer payments on their loan’s principal balance.
Investors, who own 88 percent of the loans that may be eligible for modification under the settlement and who are wary of huge potential losses that may result from these mortgage modifications, are suing Bank of America in U.S. District Court in New York over who should pay for the modifications.
Popularity: 13% [?]
June 17th, 2009 at 1:08 am
Mr. President why are the banking,and loan company not making loans as you promised they would do for the american people we are all hurting and not getting any help. Time for them to answer to you for not helping us the little people that keep them in business, maybe we should boycott their business.
August 26th, 2009 at 9:33 am
I suggest ever person fighting the mess with BOA unite together and start town hall meetings in front of every BOA banks…there are at least a million mortgage holders fight with BOA for help that was promised by u know who.
Town hall meetings WILL move this along. Trust me. U can see what the town hall meets did for the health care issue. Do it..Someone gets a website and we all go to it to gather states and towns and bank addresses to meet at. Do it…Veronica
November 9th, 2010 at 6:30 pm
Let us fight BOA for our homeowner rights!!! So many have lost their homes due to horrific practices w/i the mortgage industry!!! Countrywide screwed many now BOA has got to make amends.
Looking for a Class Action Lawsuit here in Georgia to make the Banks do the right thing!!!
Lets band together to get this going and make the Banks do what is right for all the American people and their families!!!
Obviously 64,000 is just the tip of the iceberg!!!
February 15th, 2011 at 10:58 am
I am a survivor of Hurricanes Georges 1998 and Katrina 2005. I experienced property loss as a result of both storms.
In 2005, shortly after Katrina moved inland, Countrywide Home Loans, telephoned me and stated Countrywide was deferring three mortgage payments in an effort to relieve the financial expenses associated with the storm diaster recovery of Hurricane Katrina. That at some time in the near future a “work-out agreement” would be created to allow me to repay the defered payments. In January of 2006 Countrywide telephoned and set statements demanding I make full payment to bring the account current. Countrywide refused to make or discuss the promised “work-out agreement”. I was unable to bring the account current because I had become totally disabled in 1999 and was denied Social Security Disability, experienced Identity Thief in 2006 costing about $9K in Visa charges.
Countrywide notified me in July of 2007 they were beginning foreclosure preceedings. To date, neither Countrywide nor BofA will discussed the promised “work-out agreement” and are still pursuing foreclosure on my home, the home of a Disable Service Veteran of Ten year active duty. I live in Alabama and have two loans through Countrywide/BofA that falls within this Class Action Lawsuit of California and Florida, but no one has contacted me about settlement.