On August 21st, the announcement was released about Bank of America’s record settlement with the Federal government as well as many States around the country. The bank will pay $16.65 billion to settle claims against the company as well as its related parties, namely Countrywide Financial Corporation. It is the largest civil settlement with a single entity in American history.
Of the $16.65 billion Bank of America is to pay, $7 billion will go towards relief for struggling homeowners, borrowers and communities affected by the bank’s lending practices. According to the Department of Justice, the relief will come in the form of principal reduction loan modifications, new loans to credit worthy borrowers, donations to assist communities in recovering from the financial crisis and financing for affordable rental housing.
I’m happy to hear people who were harmed by what took place in the mortgage market during that time are being helped. I can say in hindsight, and from personal experience, that it was certainly a period of irrational exuberance. The best lessons learned are often those learned the hard way.
Please feel free to contact me at (312) 285-6644 with any questions you might have. And if you are a neighbor in Bowmanville, please say hello!
Heather McRae is a residential mortgage lender. She was first introduced to the real estate industry in 2001. Heather lends throughout the State of Illinois and specializes in condos within the City of Chicago. She is a proud resident of Lincoln Square’s Bowmanville neighborhood.