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Relief for homeowners with Countrywide loans

Thursday, December 22, 2011

Homeowners who were victims of mortgage discrimination will be entitled to hundreds or thousands of dollars of financial compensation from Bank of America, on behalf of Countrywide.

The U.S. Department of Justice announced a $335 million settlement against Bank of America's Countrywide financial unit for discriminating against more than 200,000 black and Hispanic borrowers by steering them into more costly, riskier home loans, and by charging higher mortgage fees.

Latino and African American consumers who qualified for prime rate loans were charged more money, often higher fees, based on their race and ethnicity, according to the Justice Department. These victims are each expected to receive between $500 and $1500.

Approximately 10,000 Latino and African American borrowers who qualified for prime rate loans were steered into mortgages with higher priced interest rates. These victims will be entitled to greater compensation.

The Justice Department will be contacting consumers directly who they have identified as having been discriminated against from 2004 - 2008.

Consumers who believe they have been discriminated against by Countrywide can email the Justice Department at [email protected]