BOA agrees to $8.4bn Predatory Lending Settlement

This will benefit victims of predatory lending practices by Countrywide Financial in California, Florida, Illinois, Arizona, Connecticut, Iowa, Michigan, North Carolina, Texas and Washington


<snip>In a sweeping deal that could be worth more than $8.4 billion, Bank of America Corp. has agreed to settle claims brought by state attorneys general regarding certain risky loans originated by Countrywide Financial Corp.

The deal will cover nearly 400,000 borrowers, Bank of America announced on Monday. It will apply to borrowers who took out subprime loans with adjustable or fixed interest rates as well as those with option adjustable-rate mortgages that are serviced by Countrywide, which was acquired by Bank of America on July 1. Option adjustable-rate mortgages allow borrowers to make a minimum payment that may not even cover the interest due and can lead to a rising loan balance.

The cost of the program will be shared by Bank of America and investors who own securities composed of mortgages originated by Countrywide or by third parties who sold those loans to Countrywide. The eligible mortgages were originated prior to Dec. 31, 2007.

"With this settlement, we have the first-of-its-kind mandatory loan modification program," said Illinois Attorney General Lisa Madigan, who had filed a civil lawsuit alleging that Countrywide engaged in unfair and deceptive practices. "This program is going to help homeowners stay in their homes, which ultimately helps investors," she added. "It will shore up communities and therefore it will help with the economy." <snip>

http://online.wsj.com/article/SB122326958041707133.html?mod=googlenews_wsj

beset by such practices, from every victim of such practices. :P