Says Countrywide Uses "Terror" Tactics on Homeowners

Cook County Treasurer Maria Pappas said today that Countrywide Home Loans and other mortgage firms are threatening Cook County property owners with "terror" tactics. She called on Bank of America to cancel its purchase of Countrywide.

"Countrywide, if this is the way you do business, why would Bank of America want you?" Pappas said. "Get out of Cook County and go back to California."

Countrywide Tax Services Corp. sent some 80,000 letters to owners with mortgages claiming that they must send their property tax bills to Countrywide in California or have a $5 fee charged to their escrow accounts from which it pays their property taxes.

Other firms sent similar letters to their clients just before Pappas' office mailed bills for the first installment of tax year 2007 to property owners. The due date for the bills is March 4, 2008.

Pappas said the firms want to obtain the original bills to avoid paying a $5 duplicate bill fee to use an electronic payment system. Mortgage firms make about 600,000 payments per installment without original bills, Pappas said.

"The firms do not need the original bill to pay out of escrow, and know that federal law requires them to pay on time," Pappas said.

"These are terror tactics to stampede customers," Pappas said, calling on Bank of America to cancel its purchase of Countrywide.

Pappas noted that during the last tax installment, in 2007, mortgage firms also tried to avoid the $5 fee, but most rescinded their letters.

Beside Countrywide, firms sending letters include Aurora Loan Services, LLC; Bank Financial; EverHome; First Horizon; Flagstar; Liberty Lending; Nationstar; OCWEN Loan Servicing; Residential Credit Solutions; Regions Mortgage, Saxon Mortgage; TCF Bank, and West Star.