Pa. in $150M settlement with Countrywide

HARRISBURG - Thousands of Pennsylvania homeowners are in line to benefit from a $150 million settlement between the state and Countrywide Financial Corp.

State Attorney General Tom Corbett announced the settlement today. He said 10,000 subprime and pay-option borrowers may be able to avoid foreclosure through various forms of relief available as part of the deal.

Corbett's office alleged that Countrywide misled many Pennsylvanians and encouraged them to take out loans they didn't understand and couldn't afford.

The practices employed by Countrywide are at the center of the nation's home-lending crisis. The company was taken over by Bank of America last year.