Countrywide Home Loans Inc.

Hartford, CT: (Apr-11-07) The state Department Of Banking filed a lawsuit against Countrywide Home Loans Inc., one of the nation's largest mortgage lenders, accusing it of charging Connecticut consumers excessive fees when they were approved for home loans. Countrywide was accused of charging fees - points, application charges and other administrative costs, that exceeded what the state law permitted, affecting 473 loans that were closed between Oct. 1, 2001, and Aug. 31, 2005. State law prohibits lenders from charging fees of more than 5 percent of the principal loan amount on the original loan and any subsequent refinancing with the same lender if the refinancing occurs within two years of the original mortgage. In a settlement agreed upon, Countrywide will pay $400,000 to the state and a $100,000 contribution to NeighborWorks, a national nonprofit group that fosters community improvements and home ownership efforts. In addition to the settlement, Countrywide has reimbursed borrowers the total of the excess fees paid, plus interest and an amount for the lost use of the money that had been overpaid. [COURNAT NEWS: COUNTRYWIDE FEES]

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Published on Apr-17-07