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untanglingwebs
El Supremo
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LANSING - Attorney General Mike Cox today announced a major settlement between the State of Michigan and Countrywide Financial, the nation's largest mortgage lender, resulting from allegations of predatory lending. The settlement will provide relief for more than 10,000 current and former Michigan homeowners who are struggling with the national home foreclosure crisis.
"Through our negotiations, we have provided a helping hand to thousands of Michigan families who are struggling with the foreclosure crisis," said Cox. "And, unlike the Wall Street mess, this was no bailout. Countrywide is paying, not the taxpayers."
Cox conducted national negotiations with Countrywide and other state attorneys general due to allegations of questionable lending practices. Those lending practices included misleading marketing techniques and incentives for selling loans with risky features, which may have contributed to the national increase in foreclosures.
As a result of the negotiations, Countrywide must offer to refinance thousands of Michigan mortgages, provide millions in financial assistance and stop questionable loan practices.
Under the terms of the settlement, Countrywide will:
Refinance as many as 9,700 mortgages in Michigan, giving families an opportunity to keep their homes, and saving them approximately $129 million as a result of more favorable terms.
Pay more than $9.8 million to assist Michigan homeowners who lost their homes to foreclosure. These funds will also be used for borrower education programs and neighborhood rehabilitation efforts.
Pay relocation assistance payments to certain homeowners who go into foreclosure after the date of this settlement, costing Countrywide up to $70,000,000 nationally.
Stop selling subprime and option ARM loans in Michigan for two years, and impose new limits on the sale of low or no-documentation loans.
Cap the amount a broker can earn to 4% of the amount borrowed.
Stop an automatic foreclosure process until certain details regarding the mortgage holder's situation have been verified.
Report quarterly to the Attorney General on the status of its troubled mortgages and what it is doing to keep them from going into foreclosure.
Maintain a specified number of staff focused on helping troubled homeowners avoid foreclosure proceedings.
Homeowners who acquired a loan from Countrywide Financial can call the Countrywide hotline for more information at 1-800-669-6607.
Citizens who feel they are victims of questionable lending practices can file a complaint with the State of Michigan Office of Financial and Insurance Regulation at 1-877-999-6442 or the Attorney General's Consumer Protection hotline at 1-877-765-8388.
http://www.michigan.gov/ag/0,1607,7-164--201239--,00.html |
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Thu Mar 04, 2010 8:41 am |
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untanglingwebs
El Supremo
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Flint received a $250,000 settlement from the Countrywide lawsuit. The letter was initially sent to nancy jurkiewicz when Brown was interim mayor as the money was intended to help with housing related issues. The letter was very specific about how the money could be used. The city attorney and staff were working on a program to use the money when Atkinson replaced the director of DCED,
Atkinson took over and disregarded the AG letter as to how the money could be used and in resolution 090784 assigned the money to be used for a magistrate in the 68th District Court. This was not a permissable use of the funding and the money was reprogrammed.
When Judge Hayman came to council, he still believed the money for the magistrate was from his settlement. As this money has allegedly been used for a magistrate since last summer, what account is going to take the hit for money already spent?
The AG's office declined the city request to use the money for this but allegedly allowed the money to be used for code enforcement.
Scott Kincaids resonse was to say he was confused as Tracy Atkinson was not in charge of code enforcement and no one could explain how the money came to DCED.
Kincaid knows grants and asked Tracy Atkinson how much of the money was to be used for administrative costs such as the accounting procedures and reporting to the AG Cox. He was surprised when she said none. I wonder how the department will charge this time off. General Fund? |
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Thu Mar 04, 2010 8:57 am |
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