Another Countrywide shoe drops

In July, the Federal Trade Commission announced that 19,529 former Georgia customers of Countrywide Home Loans would share in millions of dollars in refunds that the now-defunct company overcharged.

The charges included hidden escrow and other fees after customers had filed for bankruptcy because they couldn’t pay their mortgages.

Another Countrywide shoe dropped Wednesday when Bank of America, which bought out Countrywide in 2008 and eventually shut it down, agreed to pay $335 million to resolve allegations that its Countrywide unit engaged in a widespread pattern of discrimination against qualified African-American and Hispanic borrowers on home loans.

According to a Justice Department complaint, as reported by The Associated Press,

Countrywide charged over 200,000 African-American and Hispanic borrowers higher fees and interest rates than non-Hispanic white borrowers with a similar credit profile.

Because of the higher costs for loans, borrowers were at an increased risk of foreclosure, the DOJ said.

A Bank of America spokesman said the company continues to try to clean up the damage Countrywide, which did a brisk business in Georgia, left in its wake. It wasn’t clear how many former Georgia customers were victims of the discriminatory lending practices – or whether they’ve been able to recover.

22 comments Add your comment

First? Only?

December 21st, 2011
6:07 pm

Have any of these people already lost their homes? Good grief, what a greedy and world we live in!

zadoc

December 21st, 2011
6:10 pm

Bank of America (a.k.a. Bank of Al Quada) execs are criminals. This settlement isn’t enough. I wouldn’t take less than seeing BofA going OoB (Out of Business).

POLL: Is Bank of America’s Record $335 Million Fair-Lending Settlement for Overcharging Minorities Fair?
Vote: http://www.wepolls.com/p/6653264

[...] the original post: Another Countrywide shoe drops – Atlanta Journal Constitution (blog) ← BofA Agrees to Record $335 Million Fair-Lending [...]

catlady

December 21st, 2011
6:48 pm

Are these folks getting their houses AND their money back?

Dawntrae

December 21st, 2011
7:58 pm

“…the company continues to try to clean up the damage Countrywide, which did a brisk business in Georgia…”

Who’d have guessed, Georgia? The Countrywides of the world always make a bee line for places like GA, where the average IQ is barely above room temp. Easy, easy pickins.

Sister Sarah

December 21st, 2011
8:04 pm

I’m willing to BET there won’t be many posts on this particular story. It does not do the “cause” any good to have the racism that so many wish to deny on full display for all the world to see. I saw on a blog earlier the usual type of suspects who seem to have a problem with “social justice”. Well , this is the VERY social justice that is spoken of – the right to receive the same consideration as the next person given the same qualifications. Ironically, this is the very thing at the core of affirmative action. People distort that as well though, of course. Let’s just shrug it off and pretend this is all a figment of ur imaginations. You know… like we always do. It’s the “race card”.

Chumps

December 21st, 2011
8:29 pm

$335 million fine? Chump change for BofA—they made billions on these loans deals and pay millions in fines!!! That’s how business is run!! Their execs kept millions and chump taxpayers got hosed with all the bailouts. Congrats chumps!

Buzz Kill

December 21st, 2011
9:12 pm

Do the math folks that is a whopping $1675 per victim before the government gets thier piece. Don’t wait too long at your mailbox for your $5.00 check!

bigmars

December 21st, 2011
9:26 pm

If they settled on 200,000 victims it was probably triple that. If they settled on 335 mil it probably should have been a billion.

Tom G(Independent)

December 21st, 2011
10:19 pm

I bet B of A regrets the day they acquired Countrywide and all of its hidden problems?

Jim

December 21st, 2011
10:22 pm

Yea BofA wouldn’t loan to minorities just because they were minorities, regardless if they were qualified. I don’t believe that for a second.

I get it now

December 21st, 2011
10:32 pm

Now I understand why BOA sold our loan to Green Tree a few months ago. Our mortgage has always been in good standing but now they are trying to muddy the waters by shedding these loans under this situation.

Fresh Prince of Belfast

December 21st, 2011
10:51 pm

Jim

December 21st, 2011
10:22 pm

Yea BofA wouldn’t loan to minorities just because they were minorities, regardless if they were qualified. I don’t believe that for a second.

Yes it’s unheard of that a corporation would prey upon people, especially minorities

Dig a little deeper...

December 21st, 2011
11:49 pm

1. These are loans Countrywide originated, yet everyone wants to crucify BofA. 2. The incremental differences in the loan fees / pmts are not enough to blame foreclosure on. That is a broad generalization made by the DOJ.

BofA certainly isn’t innocent in all of this, but this seems to be a little out of context here.

Graham Wellington III

December 22nd, 2011
4:36 am

I bought my house in 2006 and got ripped off by Countrywide (Almost 3K month for a 305K loan) before they were bought by BoA. Obviously, I refinanced to a better rate in 2008. But do I qualify for these initial damages? I want some of this settlement money!

[...] Another Countrywide shoe drops — Atlanta Journal Constitution [...]

A. S. Mathew

December 22nd, 2011
7:07 am

Bank of America got a only a small slapping, but some big hitting will
fall on them one day for ripping off millions of innocent customers
through their ruthless tricks and greedy operations. How they made
millions of dollars like a day time robbery? Their stocks may worth
99 cents some day.

Divide and Conquer

December 22nd, 2011
8:43 am

Graham W., what the heck was yous interest rate 10%???

Divide and Conquer

December 22nd, 2011
8:43 am

>your interest rate….

Stephan

December 22nd, 2011
8:46 am

This is very sad indeed. Corporate greed is everywhere and I’m sure BofA had no idea what it was almost forced to buy when it acquired Countrywide. Don’t blame BofA for this mess. They are trying to clean it up and until they do, the economy will continue to sputter. I think they’ve learned their lesson and we need to support them in order for our economy to take off again.

minor cash

December 22nd, 2011
12:16 pm

$335 million “fine” for b of a? no big deal–that’s chump change for them—they’ll just pass this cost on to chump customers with higher fees—and their crooked execs stay richer than ever!! capitalism–a wonderful thing!!

laron

December 26th, 2011
2:24 pm

Dawntrae should leave and move back to Michigan. That would raise the IQ of both Georgia and Michigan.