Pa Ag Announces Countrywide Settlement

01.29.09 | Terry Diener

Pennsylvania Attorney General Tom Corbett says his office has reached a more than $150 million settlement with Countrywide Financial Corporation to obtain mortgage relief and cash assistance for thousands of Pennsylvania residents with loans through Countrywide.

Corbett said his office has been investigating Countrywide for several months and the investigation has centered on the subprime mortgages that were sold through Countrywide. Corbett alleges that Countrywide's practices misled many Pennsylvanians and encouraged them to take out loans they did not understand and ultimately could not afford.

More than 10,000 Pennsylvania homeowners may be eligible for loan modification, relocation assistance and mortgage foreclosure relief as part of the negotiated settlement. The loans covered by the settlement are among some of the riskiest and highest defaulting loans at the center of America's foreclosure crisis.