Troubled mortgage servicer Countrywide, just one month after settling a securities class action for $600 million, has settled with the Federal Trade Commission over allegations that the company wrung excessive fees from homeowners in the months before they defaulted on their loans.
Countrywide has agreed to pay $108 million. According to the FTC, this is largest resolution of a mortgage servicing case.
The fees, imposed for maintenance and inspection of homes near foreclosure, were marked up from their initial cost before they were passed on to consumers.
Bank of America, which now owns Countrywide, stated that it settled with the FTC to "avoid the expense and distraction associated with litigating the case." BofA was represented by King & Spalding, and admitted to no wrongdoing. For more on the case, check The Am Law Daily and The Am Law Litigation Daily.