Expand Your Education with These Courses from
Bundle 1: CIPS Core Courses (Non-US Version).
Accredited Buyer’s Representative.
Bundle 3: CIPS Institute (US Version).
At Home with Diversity.
Territory Management: Skills for Sales Success: Part Eight.

Mortgage Servicers Aim to Head off Foreclosures

Have a comment on this article? Share on Facebook!

By Robert Schroeder, MarketWatch

RISMEDIA, Oct. 12, 2007-(MarketWatch)- Banks and mortgage companies are ramping up efforts to head off a wave of foreclosures by expanding and improving counseling services to troubled borrowers, the institutions and the U.S. government announced Wednesday.

A newly formed group called Hope Now, consisting of banks and lenders such as Citigroup Inc., First Horizon National Corp. and H&R Block Inc. subsidiary Option One Mortgage, will target at-risk borrowers by means of direct mail that encourages them to seek counseling.

Counseling organizations are also members of the group.

In addition, the mortgage servicers are taking steps to have dedicated teams of experts available to counselors as they work through foreclosure prevention with customers. A model for the companies includes a toll-free phone number, as well as an e-mail address and fax line.

Treasury Secretary Henry Paulson, announcing the steps Wednesday, said that the group consists of 11 of the largest mortgage servicers, representing 60% of the mortgages in the United States.

“Only through better integration of their efforts can mortgage counselors and mortgage servicers reach the greatest number of borrowers facing payments they can’t meet, and only with increased coordination can they be more effective in finding solutions for those homeowners,” he commented.

Some 2 million mortgages are due to reset to higher rates in the months ahead, and the White House and Congress have scrambled to find ways to help borrowers. Wednesday’s announcement stems from a foreclosure initiative announced by President Bush in late August.

Wednesday’s announcement also builds on $43 million in new grants for housing counselors, announced last week by the Housing and Urban Development Department.

“Housing counselors make a difference,” said HUD Secretary Alphonso Jackson on Wednesday. “They help people better understand their mortgages and to sign up for mortgages that they can afford.”

Robert Schroeder is a reporter for MarketWatch in Washington.

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.

Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com