Countrywide Begins To Issue Homeowner Refunds

By Kyle Chezum Updated on 9/25/2013

Refund checks are finally being sent to the more than 450,000 borrowers who suffered overcharges from the mortgage lender Countrywide after they fell behind or defaulted on their home loans, due to the $108 million settlement in 2010 with the Federal Trade Commission, the agency said

Borrower refunds are averaging $240 per person. However, some could reach several thousand dollars.

In a report from the FTC, two Countrywide units had frequently overcharged customers, including some in bankruptcy, between January 1, 2005, and July 1, 2008, after which the largest mortgage lender and servicer in the US was purchased by Bank of America Corp for $2.5 billion.

"Countrywide's unconscionable behavior harmed American consumers on a massive scale," FTC Chairman Jon Leibowitz said in a statement. "It's astonishing that a single company could be responsible for overcharging more than 450,000 homeowners."