Countrywide to make $11.5 million in N.C. refunds
Published: Thu, Dec. 04, 2008 11:26AM
Modified Thu, Dec. 04, 2008 11:28AM
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closeMortgage lender Countrywide has agreed to refund $11.5 million to about 4,800 borrowers in North Carolina under a settlement with the state banking commissioner.
Countrywide also has agreed to make $2 million in grants to 26 nonprofit organizations in the state that provide foreclosure prevention counseling, according to an announcement today.
"We found evidence that Countrywide overcharged thousands of North Carolina homeowners," deputy banking commissioner Mark Pearce said in a prepared statement. "This settlement provides for a full refund of any illegal charges identified in the course of our examination."
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The banking commissioner's office found that about 3,800 borrowers were overcharged on first mortgages, and another 1,000 were overcharged on second mortgages. Homeowners entitled to refunds should receive their checks within 60 days.
Borrowers who want to find out if they will receive a refund can call the N.C. Office of the Commissioner of Banks at 1-888-384-3811.
Countrywide officials could not be reached immediately for comment.
The settlement supplements a multi-state agreement, announced in October, under which Countrywide Financial Corp. agreed to modify unaffordable mortgages. The latest settlement involves Countrywide units Countrywide Home Loans and Countrywide Mortgage Ventures.
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