Events Calendar
In This Section
Barton goes on injured reserve
Cavs, Magic not really a rematch
U.S. senator seeks faster disability aid for veterans
Veterans describe rewards, sacrifices
8 indicted in Ohio in highway agency probe
Vatican looks to heavens for signs of alien life
Bill Clinton urges Senate Dems to pass health care
Stocks zigzag after rally as the dollar rises
Most Read Stories
Suitcase causes bomb scare at Akron bus terminal
Akron City Council OKs higher speed on I-77
Chapel Hill isn't rolling right along
Motorcyclist killed, wife injured in Stark County crash
Man says he was punched, robbed by 3 people in parking lot
New eateries expand menu of options
Patrick McManamon: Here's what the Browns should try the rest of the season
Louisville athlete commits to play for Boston College
Family found dead in Ohio home
Unusual sports bar to be sold at auction
Indians and Reds to share ballpark
Ridenour: Browns are back but nothing has changed so far
Blogs:
Pets:
It Takes All Kinds
The Heldenfiles:
Tuesday Notebook
Patrick McManamon:
An interesting thought from a reader
Akron Zips:
Akron vs. Mount Union — Liveblog
Tribe Matters:
Indians announce spring dates
Cleveland Browns:
Mangini doesn't name a quarterback
Kent State Sports:
Flashes interested in another Cincinnati player
Cleveland Cavaliers:
Shaq: It’s All About Winning Championships
Buckeye Blogging:
Buckeyes Roll 100-60 / Season Outlook
Varsity Letters:
Report: Walsh baseball player commits
All Da King's Men:
More On The Fort Hood Jihadist
Blog of Mass Destruction:
Simply Incapable of Telling The Truth
Akron Law Café:
Health Care Financing Reform: (63) Commonwealth Fund Report on Primary Care
See Jane Style:
Muffle Your Muffler
Car Chase:
Clock Tender- Extending the Life of Collector Car Clocks
Let's Talk Real Estate:
Rumors: Akron Starbucks Closing
Ohio Travels with Betty:
Jack is looking for a trip to Southern Ohio the week of November 16.
Sound Check:
Aeromsith looking for new singer as Steven Tyler contemplates solo career
HRLite House:
Personal Rant – Why People Do Not Live in Northeast Ohio
Akron Gamer:
Video: 'Modern Warfare 2' hits the streets
By Beacon Journal staff and wire services
POSTED: 02:06 p.m. EDT, Oct 06, 2008
Facing a lawsuit over deceptive mortgage practices, Bank of America Corp. is agreeing to pay more than $8 billion to modify hundreds of thousands of loans to keep people in Ohio and other states from losing their homes.
Charlotte, N.C.-based Bank of America said today it will modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 customers of Countrywide Financial Corp., the mortgage lender it acquired last summer.
Countrywide is the same company that owned the mortgage on the Akron home of 90-year-old Addie Polk before it sold the loan to Fannie Mae, which foreclosed on the property. Polk on Thursday shot herself as sheriff's deputies arrived at the house to notify her of her eviction. By Friday afternoon, after Polk's story was thrust into the national spotlight, Fannie Mae officials said they were forgiving Polk's mortgage and allowing her to return to her home.
She still has an $11,380 home-equity loan through Countrywide.
The attorney general offices in 11 states announced today that the bank was modifying loans.
Some borrowers stuck with Countrywide customers might qualify for having to pay nothing but interest for a decade. Even people who can't afford to keep their homes with such changes will be able to get help moving to a new home.
''More than 8,000 Ohioans will be offered mortgage loan modifications that will help thousands of Ohio families avoid foreclosure and stay in their homes,'' said Ohio Attorney General Nancy H. Rogers.
Illinois and California sued Countrywide earlier this year. Nine other states have also joined the settlement, and other states could sign on, officials said.
In California alone, the settlement will offer $3.5 billion in relief. For Ohio, that would translate to $97 million.
''Countrywide's lending practices turned the American dream into a nightmare for tens of thousands of families by putting them into loans they couldn't understand and ultimately couldn't afford,'' California Attorney General Jerry Brown Jr. said in a statement Sunday.
The other states joining the settlement are Arizona, Connecticut, Florida, Iowa, Michigan, North Carolina, Ohio, Texas and Washington.
In a statement, Barbara Desoer, president of Bank of America's mortgage, home equity and insurance services, called the plan ''a comprehensive program that provides more solutions than ever before to assist troubled borrowers and put them back on the path to sustained home ownership.''
The mortgage aid includes revising customers' payments so they don't exceed 34 percent of income. Other options include reducing interest rates and adjusting principal so that borrowers don't wind up actually losing equity under some payment plans.
Countrywide will not charge loan modification fees and will waive prepayment penalties.
Illinois Attorney General Lisa Madigan said she hopes the settlement could serve as a model for steps that other lenders could take to make up for misleading mortgage practices. She stressed that the agreement involves no tax money but will help people keep their homes and keep money flowing to lenders
''This settlement will help homeowners stay in their homes, which ultimately helps investors and also helps communities,'' said Madigan.
Facing a lawsuit over deceptive mortgage practices, Bank of America Corp. is agreeing to pay more than $8 billion to modify hundreds of thousands of loans to keep people in Ohio and other states from losing their homes.
Charlotte, N.C.-based Bank of America said today it will modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 customers of Countrywide Financial Corp., the mortgage lender it acquired last summer.
Countrywide is the same company that owned the mortgage on the Akron home of 90-year-old Addie Polk before it sold the loan to Fannie Mae, which foreclosed on the property. Polk on Thursday shot herself as sheriff's deputies arrived at the house to notify her of her eviction. By Friday afternoon, after Polk's story was thrust into the national spotlight, Fannie Mae officials said they were forgiving Polk's mortgage and allowing her to return to her home.
She still has an $11,380 home-equity loan through Countrywide.
The attorney general offices in 11 states announced today that the bank was modifying loans.
Some borrowers stuck with Countrywide customers might qualify for having to pay nothing but interest for a decade. Even people who can't afford to keep their homes with such changes will be able to get help moving to a new home.
''More than 8,000 Ohioans will be offered mortgage loan modifications that will help thousands of Ohio families avoid foreclosure and stay in their homes,'' said Ohio Attorney General Nancy H. Rogers.
Illinois and California sued Countrywide earlier this year. Nine other states have also joined the settlement, and other states could sign on, officials said.
In California alone, the settlement will offer $3.5 billion in relief. For Ohio, that would translate to $97 million.
''Countrywide's lending practices turned the American dream into a nightmare for tens of thousands of families by putting them into loans they couldn't understand and ultimately couldn't afford,'' California Attorney General Jerry Brown Jr. said in a statement Sunday.
The other states joining the settlement are Arizona, Connecticut, Florida, Iowa, Michigan, North Carolina, Ohio, Texas and Washington.
In a statement, Barbara Desoer, president of Bank of America's mortgage, home equity and insurance services, called the plan ''a comprehensive program that provides more solutions than ever before to assist troubled borrowers and put them back on the path to sustained home ownership.''
The mortgage aid includes revising customers' payments so they don't exceed 34 percent of income. Other options include reducing interest rates and adjusting principal so that borrowers don't wind up actually losing equity under some payment plans.
Countrywide will not charge loan modification fees and will waive prepayment penalties.
Illinois Attorney General Lisa Madigan said she hopes the settlement could serve as a model for steps that other lenders could take to make up for misleading mortgage practices. She stressed that the agreement involves no tax money but will help people keep their homes and keep money flowing to lenders
''This settlement will help homeowners stay in their homes, which ultimately helps investors and also helps communities,'' said Madigan.
Comments
Click here to post your comments
