AG discusses settlement of mortgage lender suit

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A civil deceptive practices suit against the former Countrywide Home Loans has ended with a $2.83 million settlement, as well as other components designed to address the state and country's mortgage foreclosure crisis.

The Indiana Attorney General's Office announced the settlement on Thursday, about nine months after filing a suit against the mortgage lender in Steuben Circuit Court. The suit alleged that Countrywide and its parent company - bought out late last year and now called Bank of America Home Loans - engaged in deceptive and misleading practices that put borrowers in potentially risky and costly loans. Specifically, the AG's investigation found that homeowners were misled about some terms of their loans, including pre-payment penalties and the time period that interest rates would be recalculated.

Indiana was the fifth state to take action against the company, and brought actions under Indiana's Home Loan Practices Act in Indiana Code Section 24-9-8, and Indiana's Deceptive Consumer Sales Act in I.C. Section 24-5-0.5.

A comprehensive 38-page final judgment and consent decree was entered by Steuben Circuit Judge Allen N. Wheat on April 23, part of Bank of America's sweeping multi-state settlement announced late last year that could be worth more than $8.6 billion.

With this settlement, a National Homeownership Retention Program is created to help offer affordable mortgage payments to homeowners who financed their homes through subprime loans. Bank of America also expects to modify as many as 5,000 Indiana-based loans that could exceed $54 million in savings for Hoosier families, according to consumer protection spokeswoman Molly Butters in the Indiana AG's office.

Attorney General Greg Zoeller dedicated $50,000 of the settlement to the Indiana Foreclosure Prevention Network, part of a larger effort in which the Indiana Supreme Court has joined to prevent foreclosure, offer mortgage counseling, educate trial court judges about these issues, and train volunteer attorneys to help homeowners facing foreclosure.

Part of the settlement includes $200,000 to Indiana for attorney fees and costs, the decree states.


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  1. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  2. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.

  3. While if true this auto dealer should be held liable, where was the BMV in all of this? How is it that the dealer was able to get "clean" titles to these vehicles in order to sell them to unsuspecting consumers?

  4. He has refused his Assent to Laws, the most wholesome and necessary for the public good. He has forbidden his Governors to pass Laws of immediate and pressing importance, He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance. He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation: For imposing Taxes on us without our Consent: He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.. He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless [ ] Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions. GOD BLESS THE GOVERNORS RESISTING! Count on the gutless judiciary to tie our children down and facilitate the swords being drawn across their throats. Wake Up America ...

  5. Its a valid lawsuit. Since the civil war, States have no rights anyways. Get over it, people! You are all subjects now and merely "citizens of the world" anyways, with human rights and all that. Gov'nor knows that. This is just grandstanding to try and appease the red state troops still smarting over the "Gay rights" shoved down their unwilling throats. Gotta keep them "voting" in the kayfabe elections! After all, since nobody cares about the tens of millions of Mexicans here, what's a few Syrians going to do, anyways? Guess we'll find out! LOL