Massachusetts settles predatory loan suit

Attorney General Martha Coakley announced yesterday that the Commonwealth had reached a settlement with H&R Block, the new parent company of the former Option One Mortgage Company for predatory loan practices engaged in by Option One during the real estate bubble. Besides providing several million dollars to the state, the bulk of the settlement will go towards reducing the principal and interest of those with the most egregious loans. Borrowers who were required to make "exorbitant payments" at the origin of their loans might also be reimbursed. A story in today's Globe contains all the details.