Released: October 06, 2008

Countrywide borrowers to get mortgage aid

Source: E. Scott Reckard, Los Angeles Times

An estimated 125,000 Californians who are struggling with risky mortgages from Countrywide Financial Corp. may get their loans modified and payments reduced under a program to be announced today.

In a pact that could save mortgage holders billions of dollars, Countrywide owner Bank of America Corp. has agreed to the nation’s largest loan-modification program to settle charges of lending abuse brought by California and other states.

The program could reduce payments to Countrywide borrowers and provide other benefits to total as much as $8.7 billion nationwide. It would examine nearly 400,000 loans across the nation—about 125,000 of them in California—to see how they could be reworked and made more affordable. That could include switching customers to fixed-rate loans or reducing the interest or principal.

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Keywords

Housing, Mortgages, Default, Foreclosure