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Bank of America/Countrywide Settlement and Relief

Washington and 39 other states announced a landmark agreement in October 2008 in which Bank of America agreed to modify loan terms for Countrywide borrowers. The settlement also provided money for borrowers who lost their homes and to fund local foreclosure prevention programs.


 Documents

 Home Loan Assistance (links to Bank of America site)

www.countrywidesettlementinfo.com

February 2010 news release 

July 2009 news release

October 2008 news release

Legal Documents:

Letter to foreclosed borrowers eligible for relief

Letter from Iowa Attorney General Tom Miller commending Washington AGO on its leadership

WHERE TO GET HELP

  • For information about payments for Countrywide borrowers who lost homes, visit www.countrywidesettlementinfo.com or call the settlement administrator, Rust Consulting, toll-free at 1-866-411-6987 (hearing impaired call 1-866-494-8397).
  • If you are having difficulty making payments on your qualifying Countrywide loan, see  the Nationwide Homeownership Retention Program or call Bank of America at 1-800-669-6607.
  • If you need additional resources, please contact the Washington State Homeownership Hotline, 1-877-894-HOME.

LOAN MODIFICATIONS

Bank of America is enhancing the Nationwide Homeownership Retention Program for Countrywide customers that it launched in 2008. The most recent statistics from March 2010 show that 5,540 Washington borrowers have been offered modifications with expected savings of more than $176 million in principle and interest payments. So far, 2,779 modifications have been completed for Washington borrowers with expecting savings of nearly $57 million. Ultimately, nearly 10,000 Washington homeowners are expected to receive about $200 million in loan payment relief.

Modifications will provide more affordable payments using a combination of reduced interest rates, term extensions and principal forgiveness of forbearance.

Bank of America Home Loans will contact eligible customers. If you hold a Countrywide mortgage, you can find more information about whether or not you might be eligible for relief through this settlement at www.bankofamerica.com/homeloanhelp.  Customers who fit these four criteria are eligible for relief:

  • Hold a Countrywide-originated mortgage loan, secured by owner-occupied property.
  • First loan payment was due between 1/21/04 and 12/31/07.
  • Loan has been foreclosured or was more more than 120 days deliquent on 10/8/08.
  • Made six or fewer payments over the life of the loan.

The program has been extended until Dec. 31, 2012.

FORECLOSURE RELIEF AND RELOCATION ASSISTANCE

More than $925,000 in restitution is being distributed among Washington residents who lost their homes. Checks were being mailed Feb. 12, 2010, to 491 Washington residents, who will each receive $1,884 to help offset the origination fees and other costs they paid when they applied for their Countrywide loans.

In addition, Washington residents have received approximately $635,000 in relocation assistance.

FORECLOSURE PREVENTION

The Attorney General's Office granted nearly $600,000 of the settlement payment to the Washington State Housing Finance Commission  to distribute among qualified housing counselors in Washington to provide one-on-one counseling for up to 2,300 homeowners. The grant will also fund 100 statewide Homebuyer Education seminars. The funds will enable the state to continue providing services available through the Washington State Homeownership Hotline, 1-877-894-HOME.

An additional $320,000 is going to the Washington State Bar Association to fund the Home Foreclosure Legal Aid Project, which provides free legal services to homeowners facing foreclosure.

And $10,000 has been allocated for data analysis to assist the State Foreclosure Prevention Working Group. This multistate group of attorneys general and financial regulators collects loan data from non-federal servicers and publishes reports on the effectiveness of loan modification efforts.

This Web site will be updated as additional information becomes available. Last Updated: February 2010

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