Countrywide Financial reaches settlement in subprime loan lawsuit

Countywide Financial Corporation and several other subsidiaries of West Virginia followed unfair practice of attracting customers with low interest rates on subprime loans.

They then increased the rate percentage up to 18 thus looting the unfortunate borrowers.

Attorney General Darrell McGraw sued these companies in August. The settlement established a loan modification program. Interest rates could be reduced to 2.5 % for 5 years saving consumers about $8.9 million.

Also Countrywide needs to pay $340,901 to certain customers who lost their home for not being able to repay the loan.

Source:Forbes.com

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