Bank of America (NYSE: BAC) will pay more than $824,000 in restitution to its Wisconsin customers as part of a 2009 settlement against Countrywide Financial, which the bank acquired in 2008, according to the Wisconsin Department of Justice.
The money will benefit Countrywide customers who took out subprime mortgages and subsequently lost their home through foreclosure. Eligible customers are those who took out loans between January 2004 and December 2007 and were foreclosed on between 2004 and 2008.
“I am pleased that this settlement will now provide direct relief to Countrywide customers who lost their homes to foreclosure,” said Attorney General J.B. Van Hollen, in a press release.
“My office continues to make foreclosure issues and mortgage fraud a priority. In the long run, prevention is key. However, in these instances homeowners were misled into unaffordable loans and unfortunately lost their homes to foreclosure. Restitution is now due,” added Van Hollen.
According to the Wisconsin DOJ, 648 customers are eligible for restitution. Of those, 256 will receive a payment of at least $1,947.45, while 392 customers will see a minimum of $830.63. Eligible customers have been notified and submitted the appropriate claim forms.
Attorney General Van Hollen has been active in the crackdown of mortgage related issues. In May 2009, he and Milwaukee May Tom Barrett launched the Milwaukee Foreclosure Mediation Program. The program aims to limit foreclosures in Milwaukee and serve as a resource for similar programs throughout Wisconsin.
Additionally, Van Hollen previously secured $3.2 million in restitution for Wisconsin homeowners as part of a multistate settlement against Ameriquest Mortgage Co.
