Judge Nixes Settlement Between Countrywide, Ch. 13 Trustee; Questions Fairness To Nearly 300 Borrowers Allegedly Screwed Over By Lender's Practices

In Pittsburgh, Pennsylvania, Reuters reports:

• A federal bankruptcy judge has rejected a settlement involving Countrywide Financial Corp, saying he wasn't convinced it was fair to nearly 300 borrowers allegedly hurt by the mortgage lender's abusive practices. The settlement calls for Countrywide, acquired by Bank of America Corp last month, to pay $325,000 to the Chapter 13 bankruptcy trustee in Pittsburgh, Ronda Winnecour,(1) to cover costs and settle litigation in 293 separate cases. [...] The judge ordered both sides to address his concerns, and scheduled an October 2 status conference.

For more, see Judge rejects Countrywide settlement.

Go here for other posts on the Countrywide matter in the Pittsburgh federal bankruptcy court.

(1) According to the story: In her complaint, Winnecour alleged that in dealing with the borrowers, Countrywide made inaccurate claims, filed unnecessary court papers and demanded improper fees and charges. She also accused it of losing or destroying more than $500,000 in checks paid by homeowners in foreclosure.