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BofA Modifies 64,000 Countrywide Loans

""Bank of America"":http://www.bankofamerica.com says it modified more than 64,000 Countrywide mortgages between December and March. The workouts are part of the bank's agreement with 42 state attorneys general to settle predatory lending charges against its Countrywide subsidiary.
A bank spokesperson told _""Bloomberg News"":http://www.bloomberg.com_ that the modifications made so far have reduced borrowers' principal and interest by $823.5 million. Under the settlement reached last October, Bank of America agreed to make modifications on 390,000 subprime and adjustable-rate mortgages originated by Countrywide - a move that is expected to save borrowers as much as $8.4 billion.
Bank of America has faced an onslaught of lawsuits since acquiring subprime lending giant Countrywide last July for $2.5 billion. BofA is being sued by Countrywide's mortgage investors in the U.S. District Court of New York, over who should pay for the modifications the bank is making as part of the anti-predatory lending settlement. The investors hold an 88 percent ownership in the home loans up for re-working.
_""DSNews.com"":http://dsnews.comindex.php/home/news_story/3026_ reported on Friday that Countrywide is also involved in a class action suit in the Southern District Court of California, alleging violation of the Racketeer Influenced and Corrupt Organizations Act (RICO), conspiracy to violate RICO, and violation of California's unfair competition and false advertising statutes.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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