Dallas Business Journal
Countrywide to dispense $7.46M to Texans
Mortgage lender Countrywide Financial Corp.is preparing to mail out $7.46 million in restitution to Texans who the Texas Attorney General has determined were encouraged to take on home mortgages they could not afford.
Texans eligible for a portion of the payout will soon be receiving a form in the mail to fill out to request restitution, according to the Attorney General's office.
The $7.46 million payout to Texans is part of a $345 million settlement the attorney generalâs office reached with Countrywide earlier this year. Countrywide was acquired by Charlotte, N.C.-based Bank of America (NYSE: BAC) last year.
Qualified recipients will receive about $1,400 apiece.
The office of Texas Attorney General Greg Abbott said the program to reimburse Texas homeowners was first announced in February. Only customers who took out Countrywide loans between Jan. 1, 2004 and Dec. 31, 2007 are eligible.
Borrowers who lost their homes to foreclosure or who experienced a period of delinquency that lasted more than 120 days are eligible to receive funds.
As part of the agreement, Countrywide also said it would perform loan modifications for 30,000 Texans -- a process that is valued at $335 million.
Countrywide also is funding a Relocation Assistance Program, which will provide $2.8 million in benefits to approximately 1,400 Texans who are in default on subprime mortgages and likely to lose their homes. Those Texans who are eligible will be able to receive up to $2,000 if they voluntarily turn over their residences into the program.
http://www.bizjournals.com/dallas/stories/2009/07/27/daily8.html