Bank of America, which is settling the lawsuit, purchased Countrywide earlier this year as Illinois Atty. Gen. Lisa Madigan and other attorneys general were investigating allegations of fraud against the lending giant. Bank of America promised to work out new mortgages at interest rates as low as 2.5 percent and pay cash compensation to people who already have lost their homes.
Illinois, California and at least six other states have reached an $8.8 billion settlement of their lawsuits against Countrywide Financial, the biggest subprime mortgage lender, in a deal that should help some 21,000 Illinois residents keep their homes.
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