BofA Tackles Countrywide Cases With $8.4B Plan

Law360, New York (October 6, 2008, 12:00 AM EDT) -- Bank of America Corp. has announced it will rescue subprime and adjustable rate mortgages with a plan worth up to $8.4 billion that settles deceptive lending charges brought by several states against Countrywide Financial Corp.

In a home retention plan announced Monday, Bank of America — which acquired Countrywide on July 1 — said it would modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 Countrywide customers nationwide.

“Unlike last week’s congressional bailout, this loan-modification program provides real...
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