According to an article in today’s Washington Post, Bank of America could participate in the largest settlement in predatory lending history by reworking the terms of nearly 400,000 distressed mortgages to settle lawsuits pending against Countrywide Financial. Before it was hit by the subprime crisis and bought by Bank of America, Countrywide was the nation’s largest mortgage lender.
In an effort to aid homeowners, Bank of America would suspend foreclosure proceedings against Countrywide customers who qualify. These borrowers would be eligible for the restructuring of their mortgages, possibly lowering the interest or principal on their mortgages significantly.