Industry NewsMortgage

FTC settles Countrywide loan servicing case

Delinquent borrowers to get $108M in refunds from BofA
Published on Jun 8, 2010

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by CareyBot

Delinquent homeowners who allegedly paid inflated fees to two Countrywide mortgage servicing companies for services like property inspections and lawn mowing will receive $108 million in refunds under the terms of a settlement between Bank of America and the Federal Trade Commission.

The companies created subsidiaries to hire third-party vendors, charging markups of 100 percent or more, the FTC said. The companies also failed to tell borrowers in bankruptcy when new fees and escrow charges were added to their accounts.

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