Colorado Announces $7.7M Settlement With Countrywide

Colorado officials say mortgage lender Countrywide Financial has agreed to provide $7.7 million to borrowers and to state government to settle claims that the company put home buyers in high-cost, high-risk loans.

Countrywide, the nation's largest mortgage lender and home loan servicer, is one of six major lenders who agreed to widen their efforts to help borrowers of all loans. (AP)

DENVER (AP) -- Colorado officials say mortgage lender Countrywide Financial has agreed to provide $7.7 million to borrowers and to state government to settle claims that the company put home buyers in high-cost, high-risk loans.

Attorney General John Suthers said Monday the settlement will allow about 6,800 borrowers to renegotiate loans with rates as low as 3.5 percent for five years.

Borrowers who have already lost their homes could get compensation.

Suthers says Countrywide will give the state $500,000 to expand its Foreclosure Hot Line.

A Countrywide spokeswoman says the company will comment later.

Separately, lawmakers have introduced a bill in the Legislature offering qualified homeowners a 90-day time-out in foreclosure procedures to renegotiate loans.


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