Home Countrywide – Settles Lawsuit in New Jersey

Finally, Countrywide is paying some money and taking responsibility for their aggressive sales and marketing techniques. They settled with New Jersey State. Maybe this is the beginning of them accepting that they were too aggressive. New Jersey will receive $3.7 million to help residents with foreclosure problems under a settlement the state made with Countrywide Financial Corp., Gov. Jon S. Corzine announced earlier this month.

It settles a lawsuit filed by the state alleging that the mortgage banking and loan services company placed borrowers in risky, high-priced and unaffordable subprime mortgages. The settlement creates a $3.7 million foreclosure relief fund for New Jersey borrowers and for state mortgage foreclosure mitigation programs.

“I am pleased by the agreement with Countrywide Financial,” Corzine said. “These are homeowners who through aggressive sales and marketing of inappropriate or bad loans have lost their homes or are in danger of losing their homes.”
Half the $3.7 million will fund mortgage modification programs and half will be available to suprime borrowers who have lost their homes after making six or less payments.

It is expected that an estimated 8,200 New Jersey borrowers will be assisted by the agreement. Countrywide, now a wholly owned subsidiary of Bank of America, admitted to no wrongdoing in signing the consent judgment.