LANSING - Attorney General Mike Cox today announced a major settlement between the State of Michigan and Countrywide Financial, the nation's largest mortgage lender, resulting from allegations of predatory lending. The settlement will provide relief for more than 10,000 current and former Michigan homeowners who are struggling with the national home foreclosure crisis.
"Through our negotiations, we have provided a helping hand to thousands of Michigan families who are struggling with the foreclosure crisis," said Cox. "And, unlike the Wall Street mess, this was no bailout. Countrywide is paying, not the taxpayers."
Cox conducted national negotiations with Countrywide and other state attorneys general due to allegations of questionable lending practices. Those lending practices included misleading marketing techniques and incentives for selling loans with risky features, which may have contributed to the national increase in foreclosures.
As a result of the negotiations, Countrywide must offer to refinance thousands of Michigan mortgages, provide millions in financial assistance and stop questionable loan practices.
Under the terms of the settlement, Countrywide will:
-
Refinance as many as 9,700 mortgages in Michigan, giving families an opportunity to keep their homes, and saving them approximately $129 million as a result of more favorable terms.
-
Pay more than $9.8 million to assist Michigan homeowners who lost their homes to foreclosure. These funds will also be used for borrower education programs and neighborhood rehabilitation efforts.
-
Pay relocation assistance payments to certain homeowners who go into foreclosure after the date of this settlement, costing Countrywide up to $70,000,000 nationally.
-
Stop selling subprime and option ARM loans in Michigan for two years, and impose new limits on the sale of low or no-documentation loans.
-
Cap the amount a broker can earn to 4% of the amount borrowed.
-
Stop an automatic foreclosure process until certain details regarding the mortgage holder's situation have been verified.
-
Report quarterly to the Attorney General on the status of its troubled mortgages and what it is doing to keep them from going into foreclosure.
-
Maintain a specified number of staff focused on helping troubled homeowners avoid foreclosure proceedings.
Homeowners who acquired a loan from Countrywide Financial can call the Countrywide hotline for more information at 1-800-669-6607.
Citizens who feel they are victims of questionable lending practices can file a complaint with the State of Michigan Office of Financial and Insurance Regulation at 1-877-999-6442 or the Attorney General's Consumer Protection hotline at 1-877-765-8388.
http://www.michigan.gov/ag/0,1607,7-164--201239--,00.html
Matt - great post. Any idea if Illinois was included in these negotiations? I'll have to do some research.
I don't know about the other states yet, but I will learn more and follow up.
Matt, great post, I wish that everyone would get the hint, that it is better to work with people and do what you as a huge corporation can do to help, than it is just to foreclose on people. In the long run it will be more profitable for all parties.
We have a treasure in Mike Cox. This guy is on the ball, has a great staff and looks out for consumers.
Anyone in Michigan needs to encourage Attorney General Cox to run for Govener in 2 years. I hope what he has started with Countrywide can cintinue throught the industry.
He's just a grandstanding politician, not gov material, lets see if any help is actually given froom settlement, other than kickbacks
Great information. I have an issue-if Countrywide is responsible for our having this unfair loan, then in which way are they going to rectify our now having poor credit? They have only offered us a loan at $400.00 per month lower than our original loan which is STILL higher than we can afford. We were told by a financial advisor our payment should be half of what it is at ($1700.00 per month). We were also given PMI which we should never have been given because we had excellent credit, not to mention other problems with the loan we weren't even aware of at the time! Countrywide has done nothing to get us to that low point to be able to stay in our home and afford it. Then why not put us into something we CAN afford? We are willing to relocate to do this! Why are we stuck with this ridiculous situation now?
Good news, and a terrific (finally!) outcome for Michigan! Let's see if it rolls over to other states...
Debi
great info! thanks for keeping the community up-to-date on important legal matters. have a great Thanksgiving!
Mark-
I cannot believe we haven't seen more of this! I really can't believe it wasn't more publicized. Thanks for teh comment. I hope you have a great December!
Good Morning;
I take my hat off to Mike Cox !! He is a fighter for the people of Michigan. In 2008,maybe my worst year ever,Country Wide showed no mercy.I remember the charade at Cobo Hall,over 10,000 people from all over Michigan braved the cold night and 7 inches of snow,just to try and save their homes.In the meantime the CEO of Country Wide was selling all of his company stock,while urging others to buy-up.Once again thanks for Mike Cox. Great job!
This is great news for some people, but what about the people who are still being raped and pillaged by Countrywide in Michigan?
What is their recourse?
It really depends on the situation - If you're in a situation where you feel you have been wronged, I would encourage you to talk to an attorney.
Good Luck
Do I need a property or real estate lawyer for this?
Do you know of any that would take on a corportation the size of Countrywide?
I would probably start with the AG office and go from there.
I've already filed a complaint with Mike Cox's Office of Finance and Insurance Regulation; the response that I get is sit tight while Countrywide justifies ripping you off in writing. It seems that some of this lawsuit money should be used to help the people that have been ripped off by Countrywide. You cannot add your name to this Class Action Suit that Mike Cox has if your loan did not originate with Countrywide. My loan was bought one month after signing the paperwork; and my husband and I have lost a lot more than $1,800.00 (offered by this lawsuit; if you qualify).
It seems that lawsuits do nothing to stop Countrywide Home Loans they just revert their costs into mortgages of the people that they have not yet foreclosed on. They are still getting away with everything that they doing before this lawsuit.
Darcey
Hi Folks,
Until I got my letter from the Michigan Attorney Generals Office,I didn't even know there was a suit against CountryWide.
They are offering me $1800.00 a far cry from the more then $30,000.00 of my own money I lost over the years with CountryWide.
In the letter it says to be sure before signing in agreement as there are other class action suits out there.So how do I find out about the other suits and if my recoop would be more then what I am being offered here?
After everything I have been thru here I just don't want to be 'screwed' again.
I mean I paid more to move out of my home after losing it then this offer.
Any help you can give me would be appreciated.