Vermont Attorney General William H. Sorrell has entered into a settlement with Bank of America's Countrywide Financial Corp. to resolve any claims that the state may have concerning Countrywide's origination of home loans in past years.
Countrywide will pay about $100,000 to the state of Vermont for foreclosure relief, half of which will go to specific borrowers whose Countrywide loans were foreclosed upon, and the remainder will go to general foreclosure relief efforts, Sorrell's office announced Wednesday. The settlement is similar to those entered into by other states, including states that alleged that Countrywide engaged in predatory lending practices.
The settlement confirms Countrywide's current commitment to offering loan modifications under certain circumstances to Vermonters with subprime hybrid adjustable-rate mortgages, other subprime first mortgages, and pay-option adjustable rate mortgages.
SOURCE: Office of Vermont Attorney General William H. Sorrell
