Countrywide Settlement FAQ

July 2009

1.  How do I find out if I am eligible for the $1,800

announced by General Cox on July 24, 2009?

Eligible borrowers will be sent claim forms in the mail in late July or early August, 2009. 

If you do not receive a claim form after that time, and you believe that you may be eligible, or you have other questions, you can contact the settlement administrator.  That contact information for the settlement administrator is:

1-866-411-6987

1-866-595-8397 (hearing impaired)

www.countrywidesettlementinfo.com

2.  Should I call Countrywide to find out if I will qualify for the payment?

No.  The settlement administrator has been hired to manage the claims administration process.  Customer Service at Countrywide will not be able to tell you if you qualify for these payments.  Questions can be addressed to the settlement administrator at 1-866-411-6987 (or 1-866-595-8397 for the hearing impaired), and you can also visit their website at www.countrywidesettlementinfo.com.

3.  Who is eligible for the payment?

Generally, the eligibility criteria include all of the following:

·         The loan was originated by Countrywide.

·         The first payment on the loan was due from Jan 2004 ? Dec. 2007.

·         The loan was a subprime loan or a pay option arm. (see below for further explanation)

·         The owner-occupied the home.

·         The owner was not able to keep up with the loan payments and consequently lost the home between 2004-2008.

The owner was not able to keep up with the loan payments and consequently lost the home between 2004-2008.

4.  How do I know if I had a subprime loan or a pay option arm?

Countrywide's database identified the specific type of loan that the borrower had and this information has been forwarded to the settlement administrator.  Your loan documentation may also identify the loan as subprime or a pay option arm.

5.  What is a "subprime" loan?

"Subprime" generally refers to loans that combine higher risk features for the lender (low documentation or no documentation origination, low equity ratios, cash-out financing, etc.) with higher risk borrower profiles (low credit scores, recent bankruptcy or foreclosure, etc.)

6.  What is a "pay option arm?"

A "pay option arm" is an adjustable rate mortgage that allows the borrower to choose among two or more payment options ? hence "pay option."  These options sometimes included interest-only payments or minimum payments that were insufficient to cover current interest due on the principal amount.  In that instance, the principal balance grew when the borrower did not pay enough to cover the currently due interest amount.

7.   Am I eligible to receive a payment if my loan was

transferred to Countrywide for servicing?

No.  Only borrowers whose loans were made  by Countrywide are eligible to receive a payment.  You are not eligible to receive a Settlement payment  if you obtained a mortgage loan from another lender, and the loan was later transferred to Countrywide for servicing.

8.  Am I eligible to receive a payment if I owned the

property as an investment?

No.  To be eligible to receive a Settlement payment, you must have lived in the property.

9.  I think I am eligible but I'm not sure Countrywide has my current address.  What should I do?

Please call the Settlement Administrator 1-866-411-6987 or 1-866-595-8397 (hearing impaired).

The Administrator will verify your identity.  The Administrator will update your address in the system and send you a notice package by mail.

10.  How much will eligible parties receive?

The final amount will depend upon how many of those who are eligible choose to participate.  If all eligible parties in Michigan participate, the amount will be approximately $1,800.  If fewer participate, that amount will be higher.

11.  Why does the letter only state the minimum amount

of the payment?

Some borrowers in your state may choose not to sign and return the release.  As a result, there might be additional money available for distribution to borrowers who chose to sign and return the release.  However, you should decide whether to participate in the Settlements based on the assumption that you will receive only the minimum payment.

12.  How long do I have to make up my mind?

In order to receive the payment for which you are eligible, you and any co-borrowers must complete and sign the Claim Form and Release and return it postmarked by October 22, 2009. 

13.  Do I have to pay taxes on my payment?

You may receive an IRS Form 1099-MISC with your payment check, but we cannot tell you whether or not your payment is taxable.  Whether the payment is actually taxable will depend on several factors.  The Settlement Administrator, the states, and Countrywide and its affiliates cannot give you tax or other legal advice on this matter.  If you do have tax questions, you should contact  a tax preparer or advisor.

14.  When will I receive my payment?

Payments will be made after the deadline has passed for all eligible borrowers in that state to return their Claim Forms and Releases.   We hope to begin mailing payments to borrowers who timely return a signed Claim Form and Release early in 2010. 

15.  What do I need to do to receive my payment?

If you are an eligible borrower, you must:

Complete and sign the Claim Form and Release; and

Return the signed Claim Form and Release to the Settlement

Administrator by the date indicated.

16.  What am I agreeing to by signing the Claim Form

and Release?

Please read the Claim Form and Release very carefully.  By signing and returning the Claim Form and Release, you agree to give up some legal rights and choices you might otherwise have.  For example:

• The Release states that you agree to release all claims you have against Countrywide that arise from or are in any way related to the mortgage loan listed on your Claim Form and Release and any loans originated directly or indirectly by Countrywide Financial Corporation or its affiliates in connection therewith that are secured by a second mortgage.
• By releasing all of these claims, you also agree to not file your own lawsuit or become a part of any class action lawsuit concerning these claims.

The Claim Form and Release applies to any of the above claims you might have against Countrywide and any of its affiliates, including:

• Countrywide Home Loans, Inc.;
• Full Spectrum Lending, Inc.;
• Countrywide Home Loans Serving, L.P.; and
• Bank of America Corporation. 

Your decision to participate is final.  You will not be able to change your mind, even if you later decide that you could get more money from your own lawsuit or by participating in a class action.

17.  What if I am currently suing Countrywide as part of a class-action lawsuit?

Borrowers who want to receive these payments must sign a release that releases Countrywide from any liability.  If you are currently involved in litigation with Countrywide, or think you may want to do so in the future, you should get independent legal advice before signing the release.

18.  I still have some questions.  Who can I contact?

If you have additional questions about the Settlements, you can contact the Settlement Administrator at 1-866-411-6987 or 1-866-595-8397 (hearing impaired).

If you have questions about the Countrywide Settlements that are not answered in this web FAQ, please contact the Settlement Administrator  at1-866-411-6987 or 1-866-595-8397 (hearing impaired).  If the Settlement Administrator is not able to answer your questions, they will contact the appropriate entity.