One of America's biggest mortgage lenders has agreed to pay out more than $8 billion in direct loan relief to homeowners.

Countrywide Financial, which is now owned by Bank of America, was sued by a number of states, including Iowa.  State Attorney General Tom Miller made the announcement in Des Moines.

400,000 homeowners around the country who defaulted on their loans may now be allowed to modify their mortgages and keep their homes.  In Iowa, more than 1100 homeowners will be offered help to avoid foreclosure.