June 7, 2010 the The Federal Trade Commission announced that two of Countrywide mortgage companies collected excessive mortgage-servicing fees from financially distressed homeowners. Countrywide has now agreed to pay out $108 million to settle the charges this being the largest judgment in the commission's history. The settlement money will go to over 200,000 homeowners who had loans with Countrywide before July 2008. (Countrywide was acquired by Bank of America in 2008)
According to Jon Leibowitz, the chairman of the Federal Trade Commission, Countrywide charged excessive fees to homeowners who were behind on their mortgage. They even made claims that some customers were in default of payments when they were indeed not. Shame on them!
The commission stated that the fees were grossly inflated on services like property inspections and lawn care. Subsidiaries were created by Countrywide to hire vendors and therefore increasing the cost many times in the process.
With many homeowners already in trouble, Countrywide added to their distress, imposing more fees for emerging from bankruptcy protection and imposing threats with a new foreclosure.
Countrywide made profits in the booming market years and when the loans failed made profits again and again.
In this settlement Countrywide is bared from making false representations for amounts owed by homeowners and charging fees for services that are not loan agreement authorized. They also may not charge for amounts for work in an unreasonable manner.
They are also going to be closely watched according to the settlement agreements and a independent third party will be placed to verify that bills and claims are valid for bankruptcy filed in court.
Director of the Executive office for the United States Trustees Program, Clifford J. White, said the commissions settlement “will help prevent future harm to homeowners in dire financial straits who legitimately seek bankruptcy protection.”
The $108 million settlement represents the agency’s estimate of consumer losses, but does not include a penalty, which the commission is not allowed to impose.
Mr. Leibowitz also stressed that the F.T.C. has not yet established how much will be paid to each consumer, in part, because Countrywide's record keeping was “abysmal.” About $35 million of the $108 million total was charged to homeowners already in bankruptcy proceedings, with the remainder charged to customers whom Countrywide said were in default on their mortgages.
“Now more than ever, companies that service consumers’ mortgages need to do so in an honest and fair way,” Mr. Leibowitz said.
Mr. Leibowitz, I agree!
We have been boycotting BOA because of the investor mayhem.
1: BOA Launched the equator guidelines a new system that speeds up the process LOL
2: They always have high values after appraisals
3: They want all the info from everyone and their mother on the files.
4: Buyer has to provide all their contact info and their lender.
5: They do appraisals and BPO’s to get highest value
6 : They take forever on the responses of offers
7: The payoff letter you receive after all the work is done tells you the buyer that you can’t sell it for 30 days.
There are ten other reasons in this webinar I did about a month ago watch it and weep.
You can see that >HERE
Have comments, please leave them below!
To Your Success,
Hunter Paschall
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