Florida gets mortgage relief in settlement

October 07, 2008 12:19PM

Failed mortgage lender Countrywide Financial will compensate Florida homeowners with up to $1 billion in mortgage relief under a settlement reached with the state’s attorney general over alleged abusive lending practices. The news comes as part of a multi-state settlement over complaints filed by Florida Attorney General Bill McCollum and attorneys general in California, Texas, Arizona, Washington, Iowa, Ohio, Michigan and North Carolina. Relief measures include loan modifications for an estimated 57,000 Floridians who could see their principal and interest rates reduced to more affordable terms and cash payments to some borrowers who lost their homes through predatory practices by the company. McCollum has said his office received scores of complaints in recent years from Countrywide customers alleging abuse and deception.

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