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Monday, February 11, 2008

Lenders Team Up to Prevent Prime Foreclosures

by Calculated Risk on 2/11/2008 06:11:00 PM

From the WSJ: Lenders Team Up on Plan To Prevent Foreclosures

Prodded by politicians alarmed by a surge in defaults, six major mortgage lenders are due to announce Tuesday another effort to prevent foreclosures.

Under the latest plan, dubbed Project Lifeline ... the lenders are to seek contact with homeowners who are 90 or more days overdue on their mortgages. ... Unlike the recently announced plan to freeze interest rates at current levels on certain subprime loans, this latest drive would involve all kinds of home loans...

The participating banks are Bank of America Corp., Citigroup, Countrywide Financial Corp., J.P. Morgan Chase, Washington Mutual and Wells Fargo & Co. -- all members of the so-called Hope Now Alliance. They are working with the U.S. Treasury and Department of Housing and Urban Development. Those two departments scheduled a briefing on the plan for 11:15 a.m. Tuesday.
Countrywide unveiled another subprime plan workout today, from MarketWatch: Countrywide debuts subprime 'workout' plan (hat tip Anthony)
The Calabasas, Calif.-based company is teaming up with the Association of Community Organizations for Reform Now, the advocacy group also known as Acorn, to expand an existing $16 billion program to help subprime borrowers avoid foreclosure and work out more manageable rates on their mortgages.
We're all subprime now!