The Federal Trade Commission (FTC) confirmed it is sending out refund checks to 450,177 homeowners who were excessively charged by defunct lender Countrywide. The Commission locked in the settlement in June 2010 and just announced the sending of the checks, which total more than $108 million.
The settlement represents the largest mortgage servicer-borrower arrangement. The checks will be sent to people whose loans were services between January 2005 and July 2008.
The FTC said homeowners who were behind on their loans were charged excessive servicing fees for things that were beneficial to Countrywide. The charges included things like lawn mowing and other services meant to protect the lenders investments. Countrywide subsidiaries contracted with third parties to perform the services, and in turn charged these fees to homeowners but not before marking up the price of the service, sometimes up to twice the contract cost. The FTC also said Countrywide made false claims about amounts owed and added fees and escrow charges without telling homeowners.
This settlement may not reach everyone, but it certainly sends a message to other lenders who are using shady foreclosure practices: eventually, your schemes will be uncovered and you will take responsibility for your actions. Behavior like Countrywide's is capable of dragging down an entire economy and that is why settlement such as this one should be seen as an example for other lenders in the future.
Always keep in mind that if you are facing a Florida foreclosure or having trouble making your mortgage payments, the best thing to do is communicate with your lender. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today.
