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TALLAHASSEE, FL – Attorney General Bill McCollum today announced that more than 2,700 people will receive checks from a 2008 settlement his office obtained with Countrywide Financial Corporation. As part of the settlement, Countrywide is offering foreclosure relief payments to eligible borrowers who returned valid and timely Claim Forms and Releases under a program administered by the Countrywide settlement administrator. More than $16.9 million will be distributed this week, and each check will be written for just over $6,000.

“These checks will make a significant difference for Floridians who are trying to save their homes,” said Attorney General McCollum. “This will provide real relief to struggling homeowners and families.”

In July 2008, the Attorney General filed a lawsuit against Countrywide, one of the nation’s largest mortgage companies, for allegedly engaging in deceptive and unfair trade practices. The Attorney General’s lawsuit claimed Countrywide put borrowers into mortgages they couldn't afford or loans with rates and penalties that were misleading. That lawsuit was resolved in October 2008, and the settlement agreement included a foreclosure relief payment program for Florida homeowners with qualifying Countrywide mortgages.

Important information for check recipients:

- The checks must be cashed on or before May 13, 2010.

- The payment under this settlement may be taxable, and recipients should consult a tax advisor if they have any questions concerning their possible tax liabilities as a result of this payment.

- Recipients with any questions about their checks or other matters relating to the settlement should contact the settlement administrator, Rust Consulting, toll free at 1-866-411-6987, or visit http://www.countrywidesettlementinfo.com.

Under the settlement, the Attorney General also obtained $4 million to fund foreclosure defense assistance program. The money will be provided to organizations over the course of two years, and the first funds were distributed in late 2009. The organizations that receive the grants agree to provide free legal assistance to eligible homeowners who face foreclosure but cannot afford an attorney to review their case.

“These resources, both the checks to homeowners and the grants to fund pro bono foreclosure defense assistance, are substantial assets to Floridians,” said Heather Rodriguez of Holland & Knight law firm and president of the Legal Aid Society of the Orange County Bar Association, one of the organizations that received grant funding and has an attorney dedicated to foreclosure defense assistance. “Orange and Osceola Counties are both high in foreclosures, and homeowners are struggling. We appreciate the Attorney General’s commitment to assist our residents.”

Countrywide Chief Executive Angelo Mozilo was also named in the Countrywide lawsuit and the civil case against him is still pending in Broward County Circuit Court. The Attorney General has also called on Bank of America, the company that acquired Countrywide after the lawsuit had been filed, to be more responsive to consumers who are trying to modify their loans and save their homes from foreclosure.

More information about the Attorney General’s efforts to protect Florida consumers and homeowners is available online at http://www.myfloridalegal.com/mortgagefraud.