NJ Reaches Agreement To Help Subprime Borrowers

TRENTON, N.J. (AP) — New Jersey Gov. Jon Corzine says the state has entered into a multimillion-dollar consent judgment with Countrywide Financial Corp. to resolve subprime mortgage complaints.

The judgment, made public Thursday, calls for Countrywide to offer a no-fee, streamlined loan modification program and creates a $3.6 million foreclosure relief fund for New Jersey borrowers and state agencies assisting them.

The governor's office estimates 8,200 New Jersey borrowers will be helped by the agreement.

It calls for the state to receive half the $3.6 million to fund mortgage modification programs sponsored by various state agencies. The remaining half will be made available to subprime borrowers who have lost their homes to foreclosure.

Countrywide, which admitted to no wrongdoing, also agreed to offer loan modifications or other workout solutions to borrowers behind in their payments.