Countrywide agrees to pay trustee $325,000 to settle lending suit in Pittsburgh
July 16, 2008: 02:47 PM EST



NEW YORK (Associated Press) - Countrywide Home Loans Inc. has agreed to pay a Chapter 13 bankruptcy trustee $325,000 to settle allegations that the mortgage lender sought improper fees or payments from bankrupt homeowners and otherwise violated bankruptcy court orders and regulations in nearly 300 cases.
The settlement, terms of which were filed with the court this week, must be approved by U.S. Bankruptcy Court Judge Thomas P. Agresti. A hearing on the matter was scheduled for Aug. 11.
In court filings last year, Chapter 13 trustee Ronda J. Winnecour sought to compel Countrywide to provide loan histories in 293 cases and asked for sanctions against the company for losing or destroying checks paid by homeowners in foreclosure.
Countrywide acknowledged errors in handling some debts, but it had denied any systematic effort to thwart bankruptcy protections to collect money. The company, which earlier this month was bought by Charlotte-based Bank of America Corp., agreed to the settlement with Winnecour in June.
Officials with Bank of America said they couldn't comment on the settlement because it is still pending approval by the judge. Offcials with the trustee's office did not immediately return a call for comment Wednesday.

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