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""Vermont Attorney General"":http://www.atg.state.vt.us William H. Sorrell announced Wednesday that Countrywide Financial Corporation, now a part of ""Bank of America"":https://www9.bankofamerica.com/home-loans/overview.go, has entered into a settlement with his office to resolve any claims that[IMAGE] [COLUMN_BREAK]
the state of Vermont may have concerning Countrywide's origination of home loans in past years.
Under the ""agreement"":http://www.atg.state.vt.us/assets/files/Countrywide%20Financial%20AOD%202010-3-23.pdf, Countrywide will pay $100,000 to the state of Vermont for foreclosure relief, half of which will go to specific borrowers whose Countrywide loans were foreclosed upon, and the remainder for general foreclosure prevention efforts.
The settlement is similar to those entered into by other states, including states that alleged Countrywide engaged in predatory lending practices.
According to a statement from the Vermont attorney general, the settlement confirms Countrywide's commitment to offer loan modifications to Vermonters with subprime hybrid adjustable rate mortgages (ARMs), other subprime first mortgages, and pay option ARMs.
Sorrell says it's these types of loans that have been associated with the national mortgage foreclosure crisis.
