State and Countrywide Settle Subprime Meltdown Suit
By February 11, 2009 8:40 AM
Countrywide Financial Corp. and several affiliates have agreed to make $6 million available to borrowers after marketing the kind of high-risk mortgages blamed, in part, for throwing the nation into recession. According to the Northern Colorado Business Report
, Colorado Attorney General John Suthers (pictured) announced the settlement, including $500,000 to help expand the state's foreclosure hotline (1-877-601-4673).
Countrywide will help borrowers in default or facing foreclosure save their homes by fast-tracking changes to get customers out of loans with high interest rates. They could get deals as low as 3.5 percent for five years, according to the Pueblo Chieftain
, which notes about 6,800 homeowners could benefit.
reports that thousands of Coloradans still face foreclosure, and state â€¨Representative Mark Ferrandino, a Denver Democrat, wants to do something about it. He's introduced a bill that would grant a 90-day timeout to those facing foreclosure so that they can work with lenders.