Investigation of complaints from borrowers that Countrywide improperly charged what is known as a "soft" prepayment penalty to homeowners who recently sold their homes. Some home loans allow lenders to charge prepayment fees if a mortgage is paid in full, before it is due, as the result of refinancing. On the other hand, many of these loans do not allow the lender to charge a prepayment fee if the mortgage is paid in full because you sold your home. Despite not being allowed to charge the "soft" prepayment penalty when you sell your home, our investigation shows that the fee often shows up anyway. Prepayment penalties can range well over $10,000; however, many people do not notice the charge when they sell their home. Closing on a home can be an emotional and confusing process, and unless you know what to look for, a "soft" prepayment penalty may not be obvious.
Name (Stock Symbol)
Countrywide Financial Corporation
Countrywide Financial Corporation originates, services and resells home loans. It is owned by Bank of America.
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