Federal Judge Rejected Countrywide’s Proposed Chapter 13 Settlement
A federal bankruptcy judge has rejected a settlement involving the Countrywide Financial Corporation, the mortgage lender, saying he was not convinced that it was fair to nearly 300 borrowers who claimed to have been hurt by the company’s abusive practices.
The settlement called for Countrywide, acquired by Bank of America last month, to pay $325,000 to the Chapter 13 bankruptcy trustee in Pittsburgh, Ronda J. Winnecour, to cover costs and settle litigation in 293 separate cases.
In her complaint, Ms. Winnecour said that in dealing with the borrowers, Countrywide had made inaccurate claims, filed unnecessary court papers and demanded improper fees and charges. She also accused it of losing or destroying more than $500,000 in checks paid by homeowners in foreclosure.
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Posted by Carlos Sagastume on August 26, 2008. Filed under HUD Homes.
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