Bank Of America Settles Suit Over Bad Mortgages
ARI SHAPIRO, host:
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.
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.