Bank of America has agreed to pay the Federal Trade Commission (FTC) $108 million to cover foreclosure-related servicing abuses by Countrywide Home Loans (CHL), the mega lender/servicer that it purchased almost two years ago.

Overall, the settlement will benefit more than 200,000 consumers who were charged excessive fees while facing foreclosure or trying to save their homes from bankruptcy. Countrywide profited from failed loans and "illegally extracted the last dollar out the pockets of the most desperate consumers," FTC chairman Jon Leibowitz said in announcing one of the largest settlements in FTC history. "To have a major servicer like Countrywide piling on illegal and excessive fees is indefensible," he added.

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