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Mortgage assistance in Pennsylvania from Countrywide

Countrywide has agreed to provide mortgage help in Pennsylvania and to stop foreclosures until the borrowers' financial status can be verified.

Pennsylvania state officials have said that as many as 11,000 borrowers who now have some of the riskiest and highest-defaulting loans written by Countrywide may be be eligible for help that is worth more than $150 million.

The settlement between Countrywide and the state will provide those borrowers with loan modifications, foreclosure relief, relocation assistance as well as waivers of delinquency or default fees, Pennsylvania Attorney General Tom Corbett said.

In addition, the company has agreed to pay almost $3 million to cover some costs for customers who already lost their homes to foreclosure or if they already paid fees for late payments or prepayments. Some of the funds provided by Countrywide will go toward helping foreclosed families as they search for new housing.

This agreement is the result of a lawsuit that concluded that Countrywide manipulated its underwriting standards to sell risky loans to consumers who did not understand them and homeowners who could not afford these loans.

The agreement covers mortgage loans that were originated by Countrywide Financial Corp, Countrywide Home Loans Inc and also Full Spectrum Lending Inc.