Mortgage coalition plans outreach effort |
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Wed, 31 Oct 2007 22:38
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WASHINGTON (AP) - A new mortgage industry coalition aimed at helping homeowners avoid foreclosure said Wednesday it plans to send more than 200,000 letters next month to borrowers in danger of default.The initiative, dubbed Hope Now, is designed to help the estimated 2 million homeowners whose mortgages with low rates are resetting at much higher rates at the same time the housing industry suffers through a steep downturn.The effort was announced by the Bush administration earlier this month. Treasury Secretary Henry Paulson met with leaders of the coalition on Wednesday and urged lenders to develop criteria to quickly identify borrowers likely to keep their homes through a loan modification or a refinancing.Numerous major lenders including Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co., are involved in the effort, which also includes mortgage servicers, counselors and trade groups.The letters, which are expected to be sent starting Nov. 19, direct borrowers to a toll-free number where they can talk to a housing counselor.Jonathan Kempner, chief executive of the Mortgage Bankers Association, said in a statement that the effort 'provides borrowers with a trusted source, independent of their lender, who can help them determine how to get back on track.'Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Paulson says not enough struggling borrowers seeking loan modifications 