Bank Of America Settles Suit Over Bad Mortgages
ARI SHAPIRO, host:
NPR business news starts with new hope for struggling homeowners.
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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.
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