Mortgage

Countrywide-BofA to pay $100M to settle mortgage interest rate case

Countrywide Home Loans Inc., the subprime lender taken over by Bank of America nearly four years ago, agreed to pay $100 million to settle a class action lawsuit over allegations the firm pushed customers into home loans with higher interest rates than they expected, Law360 writes.

The legal publication notes terms of the settlement were filed in a California federal court.

The original plaintiff, Jay Ralston, claimed Countrywide and its correspondent lenders concealed terms, causing customers to enter into unsafe deals that eventually led to a wave of foreclosures.

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