AUSTIN (CN) -Countrywide Financial Corp. will set aside $7.4 million from a $345 million settlement for Texas customers who lost their homes to foreclosure, the Texas Attorney General's Office said.
The state said its 2008 investigation showed that Countrywide had "encouraged homeowners to accept loans they could not afford, failed to fully disclose risky loan terms to borrowers, and wrote loans for unqualified borrowers in an effort to increase market share." The company agreed to provide $345 million to Texas homeowners. The $7.4 million is part of the larger settlement and "specifically set aside to help homeowners who lost their homes in foreclosure," the state announced.
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