For Immediate Release
Media Contact: Bob Cooper
(208) 334-4112

Date: December 22, 2010

Relief Coming for 2,000 Idaho Countrywide Financial Customers

(Boise) - Idaho homeowners will receive more than $700,000 in mortgage foreclosure relief from a legal settlement between the Attorney General, the Idaho Department of Finance, and Countrywide Financial Corporation. Attorney General Lawrence Wasden said Countrywide will offer its Idaho borrowers with qualifying subprime and pay option ARM mortgages modified loan terms to help them remain in their homes.

“By entering into this settlement, Countrywide will provide significant help to more than 2,000 Idaho homeowners who were facing foreclosure,” Attorney General Wasden said. “Working with borrowers, as Countrywide is doing, should be the industry standard.”

Countrywide Financial has agreed to take the following actions for eligible Idaho homeowners:

  • Suspend foreclosures pending a determination of the borrower’s ability to afford the loan modification;
  • Reduce interest payments and principal balances;
  • Waive approximately $275,000 in late fees;
  • Waive approximately $243,000 in prepayment penalties; and
  • Provide approximately $179,000 in relocation assistance payments.

“We are pleased that Countrywide has agreed to modify certain subprime and pay option adjustable rate mortgages in default in order to help these Idaho homeowners keep their homes,” said Gavin Gee, director of the Department of Finance.

The modification program includes subprime and pay option adjustable rate mortgage loans (POMs) in which the borrower’s first payment was due between January 1, 2004, and December 31, 2007. POMs allow the borrower to choose whether to pay the accrued interest on the loan each month. The unpaid interest is added to the principal, which increases the mortgage balance over time.

The program will be available for loans in default that are secured by owner-occupied property and serviced by Countrywide Financial or one of its affiliates. In addition, the borrower’s loan balance must be 75% or more of the current value of the home, and the borrower must be able to afford adjusted monthly payments under the terms of the modification.

Eligible Idaho borrowers began receiving written notice from Countrywide Financial on December 1st. Borrowers with questions regarding their eligibility for relief under the settlement should contact Countrywide Financial at 800-669-6607.

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