A California investment firm has agreed to modify 200 Massachusetts homeowners’ subprime mortgages – slashing interest rates and forgiving thousands of dollars in late charges, legal fees and past-due interest.
“This shows what can be done if (the banking industry) looks beyond just saying: ‘Let’s foreclose,’ ” Attorney General Martha Coakley said yesterday in unveiling a deal with WMD Capital Markets LLC.
WMD recently bought the mortgages from Fremont Investment & Loan, a lender notorious for aggressively pushing subprime mortgages during the housing boom.
Coakley sued Fremont last year, winning an injunction that limited the firm’s right to foreclose on its 2,200 Massachusetts customers.
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