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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. YES I WENT THROUGH THIS BEFORE IN A DIFFERENT SITUATION WITH MY YOUNGEST SON PEOPLE NEED TO LEAVE US ALONE WITH DCS IF WE ARE NOT HURTING OR NEGLECT OUR CHILDREN WHY ARE THEY EVEN CALLED OUT AND THE PEOPLE MAKING FALSE REPORTS NEED TO GO TO JAIL AND HAVE A CLASS D FELONY ON THERE RECORD TO SEE HOW IT FEELS. I WENT THREW ALOT WHEN HE WAS TAKEN WHAT ELSE DOES THESE SCHOOL WANT ME TO SERVE 25 YEARS TO LIFE ON LIES THERE TELLING OR EVEN LE SAME THING LIED TO THE COUNTY PROSECUTOR JUST SO I WOULD GET ARRESTED AND GET TIME HE THOUGHT AND IT TURNED OUT I DID WHAT I HAD TO DO NOT PROUD OF WHAT HAPPEN AND SHOULD KNOW ABOUT SEEKING MEDICAL ATTENTION FOR MY CHILD I AM DISABLED AND SICK OF GETTING TREATED BADLY HOW WOULD THEY LIKE IT IF I CALLED APS ON THEM FOR A CHANGE THEN THEY CAN COME AND ARREST THEM RIGHT OUT OF THE SCHOOL. NOW WE ARE HOMELESS AND THE CHILDREN ARE STAYING WITH A RELATIVE AND GUARDIAN AND THE SCHOOL WON'T LET THEM GO TO SCHOOL THERE BUT WANT THEM TO GO TO SCHOOL WHERE BULLYING IS ALLOWED REAL SMART THINKING ON A SCHOOL STAFF.

  2. Family court judges never fail to surprise me with their irrational thinking. First of all any man who abuses his wife is not fit to be a parent. A man who can't control his anger should not be allowed around his child unsupervised period. Just because he's never been convicted of abusing his child doesn't mean he won't and maybe he hasn't but a man that has such poor judgement and control is not fit to parent without oversight - only a moron would think otherwise. Secondly, why should the mother have to pay? He's the one who made the poor decisions to abuse and he should be the one to pay the price - monetarily and otherwise. Yes it's sad that the little girl may be deprived of her father, but really what kind of father is he - the one that abuses her mother the one that can't even step up and do what's necessary on his own instead the abused mother is to pay for him???? What is this Judge thinking? Another example of how this world rewards bad behavior and punishes those who do right. Way to go Judge - NOT.

  3. Right on. Legalize it. We can take billions away from the drug cartels and help reduce violence in central America and more unwanted illegal immigration all in one fell swoop. cut taxes on the savings from needless incarcerations. On and stop eroding our fourth amendment freedom or whatever's left of it.

  4. "...a switch from crop production to hog production "does not constitute a significant change."??? REALLY?!?! Any judge that cannot see a significant difference between a plant and an animal needs to find another line of work.

  5. Why do so many lawyers get away with lying in court, Jamie Yoak?

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