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October 6, 2008

Countrywide Reaches $8.7B Mortgage Settlement
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The mortgage giant Countrywide Financial has reportedly reached a
settlement with several states in a suit accusing it of predatory
lending. In what the Los Angeles Times calls the “largest
loan-modification program” in history, Countrywide owner Bank of America
would provide up to $8.7 billion towards reworking the terms of some
400,000 loans. Not all homeowners with Countrywide loans will qualify
under the deal. Countrywide has been at the center of the subprime loan
crisis. It’s currently under investigation for giving misleading
information on its financial condition in security filings.



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