Countrywide agrees to largest loan modification program

October 06, 2008 08:38AM

In settling a lawsuit with officials in 11 states, Countrywide Financial has agreed to modify the terms of home loans, providing $8.4 billion in relief to an estimated 400,000 U.S. borrowers. This represents the largest such program ever. Countrywide, which was recently acquired by Bank of America, was accused of using predatory lending practices. The company will waive $79 million in late fees and $56 million in prepayment penalties, and give $70 million to help those in foreclosure rent homes.

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