Bank Of America Settles Suit Over Bad Mortgages

Facing a lawsuit over deceptive mortgage practices, a Bank of America subsidiary will modify tens of thousands of loans to help keep people in 11 states from losing their homes. Borrowers stuck with Countrywide Financial mortgages that they can't afford could see their interest rates reduced or have the loan principal cut. Bank of America purchased Countrywide in June, at the same time Illinois and California sued Countrywide.

Copyright © 2008 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.


NPR business news starts with new hope for struggling homeowners.

(Soundbite of music)

SHAPIRO: One of the country's biggest banks is launching a major program to help troubled mortgage holders. Today, Bank of America announced an $8 billion home retention program. It's part of a legal settlement with various states. And it's aimed at up to 400,000 customers of Countrywide Financial. Bank of America bought Countrywide in July after the giant mortgage lender imploded. The plan involves reducing interest rates and principal in order to make sure home payments are not more than 34 percent of a borrower's income. California Attorney General Jerry Brown says this could become the largest predatory lending settlement in history.

Copyright © 2008 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.



Please keep your community civil. All comments must follow the Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.