Countrywide Settlement For Cheating Homeowners

The Federal Trade Commission announced a foreclosure fraud settlement with Countrywide Home Loans. Countrywide had set up their own companies to conduct property inspections, title searches and perform maintenance on homes that they were putting in foreclosure. Countrywide then hired these companies to do the work and marked up the cost more than 100%. Some homeowners were charges $300 for having their grass mowed. The business model set up by Countrywide to collect these excessive and improper charges was pure fraud and deceit. Countrywide agreed to pay $108 million dollars to settle the claims of 450,000 borrowers.

But wait, Countrywide was not and is not the only mortgage servicer doing this. Every mortgage servicing company still in business is charging and collecting bogus and illegal fees from unsuspecting homeowners. Will we see the Federal Trade Commission going after them?

Disclaimer: This blog is intended as general information purposes only, and is not a substitute for legal advice. Anyone with a legal problem should consult a lawyer immediately.

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