Well, it's official... In a Dow Jones Newswire:
"Countrywide Financial Corp. (CFC) confirmed late Tuesday that it entered into an agreement with the Neighborhood Assistance Corp. of America to help borrowers preserve homeownership and avoid foreclosure...
Under the program, homeowners have a 'waterfall' of options, from a payment plan, to modification, to refinancing and finally to restructuring. Homeowners will be able to achieve a mortgage program that provides a payment they can afford over the long-term."
Countrywide is scheduled to speak further on the matter at a news conference this Wednesday (October 24th) at 2:00p.m. so check back in later for more.
With much pressure raining on the industry for improved efforts to help borrowers, the move appears to be a step in the right direction IF executed properly!
Let's look at this article from Yahoo Finance: Lenders Slow to Rescue Failing Mortgages
"As defaults and foreclosures snowball, the mortgage industry is under increasing pressure to do even more to help financially strapped borrowers hang on to their homes.
'People are talking about it, saying it might be necessary, but there's not a lot of it going on,' said Guy Cecala, publisher of Inside Mortgage Finance, an independent trade publication...
Moody's Investors Service recently surveyed 16 mortgage servicers that accounted for 80 percent of the market for subprime loans made to borrowers with shaky credit histories.
It found that most of those companies had modified only about 1 percent of loans with interest rates that reset in the first half of this year."
One would surmise that this move by Countrywide is a step in the right direction. BUT...is it simply all media fluff? Can we REALLY help home owners refinance out of their existing home mortgage into a new one? What about pre-payment penalties? Will they be waived? What about homes with no equity? How willing are you to modify a loan?
We'll find out more in due time.
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