WASHINGTON, D.C. (Yahoo News) – Bank of America will pay $108 million to settle charges against Countrywide Financial Corp., which Bank of America purchased in July 2008.
The Securities and Exchange Commission charged three top executives, including CEO Angelo Mozilo, with civil fraud and insider trading last year.
Federal Trade Commission Chairman Job Leibowitz accused Countrywide of “callous conduct, which took advantage of consumers already at the end of their financial rope.”
Settlement agreements include refunding money to approximately 200,000 borrowers and notifying bankrupt borrowers monthly about what they owe, including fees.
The bank did not deny or admit to charges; however, they agreed to pay the settlement “to avoid the expense and distraction associated with litigating the case.”