N.C. consumers receive $11.5 million in compensation from Countrywide

Mortgage News > N.C. consumers receive $11.5 million in compensation from Countrywide

Date: 12/04/2008

Roughly 4,800 borrowers will be paid a total of $11.5 million, as agreed to by Countrywide Financial Corp. as part of a settlement with the N.C. Office of the Commissioner of Banks. Countrywide has also agreed to create $2 million in grants to North Carolina nonprofit housing-counseling agencies concerned with foreclosure prevention.

The Nationwide Mortgage Licensing System will receive $900,000 to support the improvement of licensing and regulation in the industry.

In 2007 the North Carolina Commissioner of Banks (NCCOB) began investigating Countrywide Home Loans and Countrywide Mortgage Ventures. Upon inspection investigators discovered violations of North Carolina’s lending laws concerning fees charged on first and second mortgage loans. Bizjournals.com reports that according to the NCCOB, 3,800 borrowers were overcharged on first mortgage loans and 1,000 borrowers were overcharged on second-mortgage loans.

The Deputy Commissioner of Banks Mark Pearce said "We found evidence that Countrywide overcharged thousands of North Carolina homeowners. This settlement provides for a full refund of any illegal charges identified in the course of our examination."

Homeowners that experienced an overcharging in fees are expected to receive a refund by check within 60 days.

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