The U.S. Federal Trade Commission on Monday said that Bank of America Corp. agreed pay $108 million to settle charges that Countrywide Financial Corp. charged excessive fees to borrowers facing foreclosure.

The money from the FTC’s largest mortgage industry-related settlement to date will be used to reimburse an estimated 200,000 homeowners whose loans were serviced by Calabasas-based Countrywide prior to its acquisition by Charlotte, N.C.-based Bank of America in July 2008.

Bank of America, which did not admit or deny the charges, said in a statement that it agreed to the settlement “to avoid the expense and distraction associated with litigating the case.”

The FTC said Countrywide would charge marked-up fees – at times reaching several thousand dollars – for property inspection, landscaping and other services provided by outside vendors, investigators found. The FTC did not indicate the illegal activity continued after the acquisition by Bank of America.

“Life is hard enough for homeowners who are having trouble paying their mortgage,” said FTC Chairman Jon Leibowitz in a statement. “To have a major loan servicer like Countrywide piling on illegal and excessive fees is indefensible.”

The settlement is the latest action taken against what was once the nation’s largest independent home lender. Three top executives, including former chief executive Angelo Mozilo, still face charges civil fraud and insider trading that were filed last year by the Securities and Exchange Commission.

For information about the FTC’s refund program, go to www.ftc.gov/countrywide.