The plan by Countrywide, a unit of Bank of America based in Calabasas, Calif., is aimed at borrowers with subprime or “option ARM” mortgages and would temporarily cut their interest rates to as low as 2.5 percent. The move has been hailed by consumer groups and by Rep. Barney Frank, D-Mass., The Los Angeles Times reported Saturday.
A spokesman for Frank, chairman of the House Financial Services Committee, called the program “the first truly comprehensive plan we’ve seen from the private sector.” With Frank and others calling for more efforts to help “Main Street” victims of the U.S. mortgage meltdown in addition to bailouts for Wall Street bankers, the Countrywide program would also allow some borrowers who owe more than their homes are worth to perhaps see their loan balances reduced, giving them equity once again in their properties.
“That sounds like good news, in particular if a huge percentage of other loan servicers go along with it,” Robert Gnaizda of the Greenlining Institute, a borrower advocacy group, told the Times.
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[...] “That sounds like good news, in particular if a huge percentage of other FHA mortgage loan servicers go along with it,” Robert Gnaizda of the Greenlining Institute, a borrower advocacy group, told the Times. Countrywide has been fairly cooperative with loan modifications and forbearances for their to sub-prime borrowers. – Darryl Goodrum [...]
Pingback by FHA mortgage loan company — October 25, 2008 @ 3:45 pm
We have found that many of our clients that have Countrywide 1st or 2nd mortgages are able to get a loan modification if they can document a hardship for our loan negotiators. Keep up the great articles!
Comment by loan modifications — November 26, 2008 @ 5:31 am