Countrywide may pay back $1-billion to Florida homeowners

In a deal meant to stave off home foreclosures, as many as 57,000 Florida homeowners could get $1-billion in relief from Countrywide Financial.

The nation's largest mortgage lender, recently bought by Bank of America, settled "predatory lending" lawsuits with 11 states and will give back nearly $9-billion to Countrywide customers.

Attorney General Bill McCollum's office said the lender will spend the next couple of months narrowing down eligible candidates in the Tampa Bay area and elsewhere. In most cases, the lender would move homeowners from adjustable-rate mortgages into fixed-rate loans. Countrywide also will waive normal refinancing fees and penalties, and promised to halt foreclosure proceedings, at least temporarily, on eligible loans in Florida.

Florida's lawsuit alleged Countrywide put people in mortgages they couldn't afford and misled them about rates and penalties.

The settlement came as Bank of America reported its third-quarter results Monday, earlier than planned, revealing a 68 percent drop in profit. It plans to boost capital by selling stock and halving its dividend.

Like most other major financial institutions, Bank of America has been hit by significant losses in mortgages, credit cards and other souring debt.

James Thorner can be reached at thorner@sptimes.com or (813) 226-3313. Information from the Associated Press was used in this report.

Comments on this article

by S	Oct 9, 2008 3:37 PM
B has it right. Check out this article from 1999 in NY times. http://query.nytimes.com/gst/fullpage.html?res=9c0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=1

by Meg	Oct 9, 2008 3:36 PM
No one should be bailed out, let economics work by itself because when the "help" is done anyway, it will all go back to finding it's spot (down, down, down if that's where it's headed.)

by mike	Oct 9, 2008 3:20 PM
I do not think that the people who commented on buying a house they could afford only to experience problems will be advantaged by this - it is only for the people who bought without using their head Buy what you need, not what you want.

by Lee	Oct 9, 2008 11:53 AM
Crunch Pinellas' foreclosure numbers. How many first time home buyers? Jumbo mortgages? Median value? Re-fis? 2005 value? ARMs? Cash out? Who appraised them? Study trends. Tax payers have seen none of that info, but we're footing the bill!

by Melanie	Oct 9, 2008 11:52 AM
I am glad I got out of my Countrywide mortgage when I did!! And I am supposed to feel sorry for Bank of America who had a 68% drop in profit?? Oh please!! Not in this lifetime!

by Cin	Oct 9, 2008 11:52 AM
I have a mortgage through Countrywide and we refianced with them was the biggest mistake of my life. The fees were very high and soon as the interest rates are better, I am refiancing with another bank, one that doesn't rip you off.

by Jayne	Oct 9, 2008 11:50 AM
I paid to refinace from a ARM to fixed. Everyone should get to refinance at the lower house value not just some.

by Joe	Oct 8, 2008 7:59 PM
Do the right thing because it is right. But know that this is no guarantee. People who eat right get fat, peope who watch thier health get sick, and careful drivers have accidents.

by chaz	Oct 8, 2008 7:59 PM
When I bougt my home, I was making plenty. Now it is three years later and I am facing bankruptcy through business failings. Things change and we haev to change with teh times! It sucks but not everyone was greedy or dumb.

by Mike	Oct 8, 2008 5:02 PM
If you follow the rules, again you are paying for the ones that do not. So, why should I not join them?

by aj	Oct 8, 2008 4:58 PM
Unprecedented raises in property taxes and insurance had a lot to do with the problem in FL, especially on the East Coast and South.

by Terri	Oct 8, 2008 4:54 PM
I agree w/Mare. Yes, some have crisis, but not most. I am fine with refinancing, but NOT at their home's new value...refinance the balance--THAT is fair. Otherwise they get FREE money, and we (who live within our means w/o credit cards) get nothing.

by Am I an idiot?	Oct 8, 2008 4:52 PM
Like George, we paid our mortgage, loans and cars on time. Cutting corners in other places even though my husband lost his job. Oh wait! We had saved for these times in case they came...now our country is "rewarding" those that din't. I AM an idiot.

by Tim	Oct 8, 2008 4:51 PM
Again, personal responsibility is being thrown out the window. When will we stop treating adults like children and make then accept the consequences of their actions? Nobody forced them to sign the papers and ignorance is not an excuse!

by Dave	Oct 8, 2008 4:49 PM
does anybody out there know if Florida is waging a similar lawsuit against Washington Mutual?

by Jon	Oct 8, 2008 4:48 PM
I understand that we need to stop the bleeding on the economy, some were prayed upon, and others just didn't know. But, I bought within my price range and with a 30yr fixed. Capitalism says I should be able to buy your house from the bank for nothing

by Honor	Oct 8, 2008 4:42 PM
I know a real estate agent who has defaulted for more than a year, continues to advertise her condo for rent, and must be in seventh heaven at gaining partners in her crime. George, you are right.So is Mare.Buy what you can afford, or DO NOT BUY.

by Julie	Oct 8, 2008 4:41 PM
We have a home loan w/Countrywide and they do suck. I can't tell you how many offers were given to us over the course of this loan to refinance, pull equity, a million times over via phone, fax & email. They are predatory, maybe it'll change w/BOA.

by Mary	Oct 8, 2008 4:41 PM
Bill - you hit the nail squarely on the head.

by Mary	Oct 8, 2008 4:41 PM
I'm taking what very little money I have, sticking in my mattress and sleeping with a gun under my pillow. The he** with all the banks. Did anyone read the article earlier about the AIG fat cats partying in CA AFTER they received their bailout?

by bill	Oct 8, 2008 4:06 PM
Let me get this straight. If you are responsible, pay your mortgage and live within your means we have the opportunity to pay for the failure of others to do the same. Socialism is alive and well in the USA

by Lynn	Oct 8, 2008 3:12 PM
I am a customer that never had a problem paying our mortgage and we knew what we signed but it did not say Your mortgage will go up every month It is adjustable but damn! I was paying $670 when I closed to $1350.00 now.

by MARE	Oct 8, 2008 3:07 PM
HEY JOE, MY PRAYER'S ARE WITH YOUR WIFE.ALL I'M SAYING IS THE COUPLE MAKING $40,000 BETWEEN THEM CAN'T POSSIBLY THINK THINK THEY CAN AFFORD A $250,000 (ADJ RATE MORT TOO) HOME AND WHEN THEY CAN'T PAY IT IT IS OUR FAULT AND NOW WE WILL HAVE TO PAY IT

by B	Oct 8, 2008 3:07 PM
Why aren't people mad at Chris Dodd(D)Barney Frank(D)and Bill Clinton? They changed laws and pressured lenders to give out money to PEOPLE WITH NO JOBS!Then greedy Countrywide started predatory lending cause they new Fannie /Freddie had to buy back.

by Peter	Oct 8, 2008 3:04 PM
"Attorney General Bill McCollum's office said the lender will spend the next couple of months narrowing down eligible candidates in the Tampa Bay area and elsewhere."*****Meanwhile BofA stock has crashed and the bank is expected to officially fail.

by Tim	Oct 8, 2008 2:39 PM
many people signed papers that had early penalties if sold or refinancedand were not informed about such. Mare I doubt you read your papers entirely. Most of us ask questions and hope for honesty from a banker. Some were very secretive.

by Leslie	Oct 8, 2008 2:38 PM
My husband has suffered due to the construction in The US! Hes has moved out of state to provide still didn;t work, we fell behind and applied for 2 modifications and both failed due to the mortgage amount being so high. Wheres our help. LOL

by George	Oct 7, 2008 5:40 PM
THIS IS BULL. WE PAID OUR MORTAGE EVERY MONTH ON TIME, DRIVE THE SAME 10 YEAR OLD CAR, LEAVE THE A/C OFF, NO VACATIONS, NO DINNER OUT, I GUESS I AM NOT AS SMART AS SOME.

by John	Oct 7, 2008 3:09 PM
We had an incident ;we agreed on certain terms of refinancing our mortgage and when we arrived at the office to sign papers things were different. States Attorney stepped into that one also. What is with the penalty charges in the State of Florida?

by joe	Oct 7, 2008 1:45 PM
Hey Mare sometime life throws you a ball you don't expect life your wife getting cancer and than loosing her job. Don't put the blame when you don't have all the facts. Be greatfull it's not you, because it's a long hard road to ride.

by Snoz	Oct 7, 2008 1:33 PM
Mare, if we just leave it to homeowners n banks the entire financial system crashes b/c they're not all as bright as you. If we regulate, at least we get to keep our jobs and economy going. Best to save homes so their values stop dropping.

by MARE	Oct 7, 2008 10:17 AM
WHY DON'T THE BORROWERS GET ANY BLAME HERE? I DON'T KNOW HOW COME THEY DON'T KNOW WHAT THEY ARE SIGNING WHEN THEY MAKE THE BIGGEST PURCHASE OF THEIR LIFE. WHEN I BOUGHT MY HOUSE I MADE SURE I KNEW WHAT I WAS SIGNING. I AM IN NO WAY A GENIUS EITHER