Monday, July 27, 2009

Countrywide Customers Eligible For Restitution To Begin Receiving Claim Forms In The Mail

Texans eligible for share of $7.46 million in restitution must fill out forms being mailed

AUSTIN - Texans eligible for $7.46 million in restitution from Countrywide Financial Corp. should be on the lookout for claim form, which were mailed late last week. The $7.46 million restitution program, which was first announced by Attorney General Greg Abbott in February, is specifically set aside for Countrywides Texas customers whose loans originated between Jan. 1, 2004, and Dec. 31, 2007, who lost their homes to foreclosure or whose payments were 120 days behind as of Oct. 6, 2008.

Only customers who receive letters from Countrywide will be eligible for restitution, and those customers must complete and mail claim forms in order to receive their share of the total restitution amount. The final dollar amount homeowners receive in restitution will depend upon the number of eligible Texans who make restitution claims.

Last year, the attorney general investigated Countrywide for encouraging homeowners to accept loans they could not afford, failing to fully disclose risky loan terms to borrowers and writing loans for unqualified borrowers in an effort to increase market share.

The $7.46 million restitution program was part of a $345 million settlement the OAG reached with Countrywide. Additionally, the states agreement with the lender included the following:

$335 million in loan modifications for about 30,000 Texans; and

About 1,400 Texans who are in default - or are likely to be in default - on their subprime mortgages and who voluntarily and appropriately turn over their residence in the Relocation Assistance Program, are eligible to receive up to $2,000. The Relocation Assistance Program is expected to provide $2.8 million in benefits to Texas homeowners.

Each claimant is projected to receive a minimum of $1,400.

For more information, visit www.countrywidesettlementinfo.com.

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