The settlement announced by the California Attorney General's Office has the potential to reach $8.7 billion. Moreover, it could result in thousands of adjustable rate loans changed to fixed-rates. The changes could include reduced interest and principal on some loans, the Los Angeles Times reported Monday.

The settlement includes settlements on loans made in at least nine states before the beginning of the year, the Times reported. It also includes repayment for some homeowners who lost their homes to foreclosure, the newspaper said.

"It's not perfect, but we have some money for people who already have been kicked out of their homes, and we have money for people who may get foreclosed on later. And there are some very significant payment reductions for people. This will allow them to stay in their homes," Attorney General Jerry Brown said.

Bank of America, which purchased Countrywide in July, said it had stopped the predatory lending practices.

Countrywide will start training employees on the settlement's details Dec. 1 and begin reaching out to troubled homeowners after that, the report said.