Countrywide has agreed to refund $11.5 million to about 4,800 borrowers in North Carolina under a settlement with the state’s Banking Commissioner. Countrywide also has agreed to make $2 million in grants to 26 nonprofit organizations in the state that provide foreclosure prevention counseling. Deputy Banking Commissioner Mark Pearce said in a prepared statement:

We found evidence that Countrywide overcharged thousands of North Carolina homeowners. This settlement provides for a full refund of any illegal charges identified in the course of our examination.

The banking commissioner’s office found that about 3,800 borrowers were overcharged on first mortgages, and another 1,000 were overcharged on second mortgages. Homeowners entitled to refunds should receive their checks within 60 days. Borrowers who want to find out if they will receive a refund can call the North Carolina Office of the Commissioner of Banks at 1-888-384-3811. The settlement supplements the multi-state agreement, announced in October, under which Countrywide Financial Corp. agreed to modify unaffordable mortgages. The latest settlement involves Countrywide units Countrywide Home Loans and Countrywide Mortgage Ventures.

Source: News & Observer

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