[Verbatim from Attorney General Jim Hood]Jackson, MS-Mississippi will be included in the national settlement with Countrywide Financial Corporation (CFC) that will allow eligible borrowers to participate in the company’s loan modification program, announced Attorney General Jim Hood. The program went into effect yesterday, December 1, 2008, and was designed to help borrowers who financed their homes with subprime loans or adjustable rate mortgages serviced by Countrywide and originated prior to December 31, 2007. Countrywide was bought by Bank of America on July 1, 2008.
Some terms of Mississippi’s settlement with Countrywide Financial Corporation include:
* Mississippi borrowers will get approximately $1 million in foreclosure relief benefits (.68% of total) and approximately $500,000 in penalty and fee waivers and other assistance through the end of 2010
* CFC will make loan modifications for seriously delinquent borrowers for Subprime and Hybrid Adjustable Rate Mortgages (ARMs), Pay Option ARMs, Subprime First Mortgage Loans
* CFC will waive late/delinquency fees, not charging loan modification fees other than FHA or HOPE loans, and waiving prepayment penalties for specified loans
* CFC will also provide a relocation assistance program for certain loans if the borrower voluntarily and appropriately departs from the premises
* CFC will also make $150,000,000 payment on a nationwide or proportionate amount based on State participation to those borrowers who have experienced a foreclosure sale or are 120 days or more delinquent
Countrywide will be contacting borrowers who are eligible for assistance. The company has also set up a toll-free line to field phone calls on the program. That number is 1-800-669-6650.
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The Mississippi Free Press produced this story through the MFP Solutions Lab, supported by the Solutions Journalism Network. This series digs into Mississippi’s systemic issues and sheds light on responses to them in other communities. Beyond just reporting on problems, these stories interrogate their causes and inspect potential solutions.
