This could explain the disappearance of the Countrywide traunch, It appears that they probably took it back at part as part of this settlement with the state of California. Doing the math, this means that LUM may have recouped over $50 million in write downs on this traunch alone - all of which drops to the bottom line. It would also have given them a lot of cash. This BK is falling apart quickly. Everyone should notice that no press releases and no SEC documents have been filed related to the $335 million pay down, as well as LUM probably being reimbursed for losses they took on the traunch. I guarantee the note holders are in their face right now as their book value continues to rise to a positive number.
SPRINGFIELD, Ill. - Facing a lawsuit over deceptive mortgage practices, Bank of America Corp. has agreed to modify tens of thousands of loans to keep people in 11 states from losing their homes, the Illinois attorney general's office said Sunday.
Borrowers stuck with mortgages they can't afford could see their interest rates reduced or have the loan principal cut. Some might qualify for having to pay nothing but interest for a decade. Even people who can't afford to keep their homes with such changes will be able to get help moving to a new home.
"This is going to provide a tremendous amount of relief," said Illinois Attorney General Lisa Madigan.
Her office and officials from California negotiated the settlement. Nine other states have also joined the settlement, and other states could sign on, said Deborah Hagan, chief of Madigan's Consumer Protection Division.
If all 50 states were to join, the settlement could provide $8.7 billion in relief to 400,000 borrowers, Hagan said.
In California alone, the settlement will offer $3.5 billion in relief. For Illinois, that would translate to $190 million. The total for the 11 states was not immediately available.
The settlement applies to people who obtained their mortgages through Countrywide Financial Corp., which Charlotte, N.C.-based Bank of America purchased in June, at the same time Illinois and California sued the company.
"Countrywide's lending practices turned the American dream into a nightmare for tens of thousands of families by putting them into loans they couldn't understand and ultimately couldn't afford," California Attorney General Jerry Brown Jr. said in a statement Sunday.
News 
Market Data 
Discover 
