June 8, 2010

By: Shaun Ertischek, Esq.

Countrywide has recently agreed to pay $108 Million to settle FTC charges related to the improper charging of excessive fees upon homeowners.  These fees were, according to the FTC, for default-related services such as property expenses and home upkeep.  However, Countrywide allegedly marked-up and inflated the cost for these services before passing them on and billing the homeowner.  This was purportedly done so that Countrywide could increase their profits in this area during the economic downturn.  The FTC also alleged that Countrywide made false or misleading statements to individuals trying to save their homes through Chapter 13 bankruptcy about the amounts owed or the status of their loans.  Under the settlement, Countrywide will be prohibited from taking advantage of borrowers who have fallen behind on their payments.