About 450, 000 homeowners who were overcharged by CountrywideHomeLoans will receive checks in the mail from the Federal Trade Commission as part of its settlement with the lender.
In July 1999, Fannie and Angelo Mozilo's CountrywideHomeLoans entered "an alliance agreement" that included "a reduced documentation loan program called the 'internet loan, '" later called the "Fast and Easy" loan.
In October, the US government sued the bank for alleged mortgage fraud, accusing subsidiary Countrywide Financial of selling thousands of toxic homeloans to Fannie Mae and Freddie Mac.