- New Programs Intensified Home Retention Efforts -
CALABASAS, Calif., Jan. 16 /PRNewswire-FirstCall/ -- Countrywide
Financial Corporation (NYSE: CFC) today announced that it helped more than
80,000 borrowers retain their homes in 2007. Loan modifications accounted
for 69 percent of all home retention efforts. Countrywide's foreclosure
prevention efforts grew substantially in the fourth quarter 2007 as a
direct result of increased staffing, outreach and investor support.
"Countrywide is proud of the progress made toward helping our customers
sustain homeownership," said Steve Bailey, senior managing director, Loan
Administration at Countrywide. "Home retention efforts in the second half
of the year increased 148 percent compared to the first six months, and we
anticipate helping even a greater number of borrowers in 2008."
The following chart highlights Countrywide's foreclosure prevention
efforts for the month of December and all of 2007. Notably, 90 percent of
Countrywide's workout efforts involve borrowers retaining their homes.
December Data 2007 Totals
(as of Dec. 31, 2007)
Count % Count %
Loan Modifications 10,066 75.84% 55,801 61.75%
Long-term Repayment Plans 962 7.25% 12,110 13.40%
Special Forbearance 430 3.24% 4,621 5.11%
Partial Claims 129 .97% 1,872 2.07%
Other Workout Efforts 508 3.83% 6,862 7.59%
Total Home Retention Efforts 12,095 91.12% 81,266 89.93%
Short Sales 1,000 7.53% 7,880 8.72%
Deeds-in-Lieu 178 1.34% 1,217 1.35%
Total Workouts 13,273 100% 90,363 100%
In recent months, Countrywide has expanded its outreach and increased
positive results for borrowers in need. Using its resources and forging
relationships with key consumer and industry groups, Countrywide's home
retention activities include:
-- Its own $16 billion home preservation initiative designed to help more
than 82,000 borrowers with loans that are resetting now through the
end of 2008. One aspect of the program modifies loans for prime and
subprime borrowers who are current in making their payments or who are
likely to have difficulty affording an upcoming reset; or to refinance
qualified subprime borrowers into prime loans. Since the inception of
this program in late October, Countrywide has provided home retention
solutions to 16,676 loans, more than 20 percent of its total loan
modification goal.
-- Countrywide is a member of the Homeownership Preservation Foundation
("HPF"), a national nonprofit counseling agency that assists
homeowners in all markets. This provides borrowers with a direct
point of contact for home retention and foreclosure prevention
assistance.
-- Countrywide is a member of the HOPE NOW Alliance, which, with the
encouragement of the Administration, brought together the resources of
mortgage companies, investors and nonprofit housing counseling
agencies to address the challenges facing homeowners who are
experiencing financial distress. Announced in early December, the
HOPE NOW Alliance is a valuable resource for crafting ways to reach
more borrowers, streamlining solutions for more borrowers, and
beginning a reporting process to enhance accountability and
transparency.
-- Countrywide's joint initiative with the Neighborhood Assistance
Corporation of America ("NACA") helps Countrywide borrowers preserve
homeownership. It bridges together NACA's comprehensive Home Save
approach that includes individual counseling and development of a
documented Affordability Budget along with Countrywide's waterfall of
home preservation options.
-- Countrywide recently announced work on an agreement with the
Association of Community Organizations for Reform Now ("ACORN") to
serve as a blueprint of best practices for home retention and
foreclosure prevention initiatives in the mortgage industry, with a
particular focus on subprime borrowers. Countrywide and ACORN will
partner to formalize counseling and workout programs for borrowers
with all types of subprime loans, not just subprime hybrid adjustable
rate mortgages with pending rate resets. The plan will include
enhanced home retention options and procedures that have been
identified for borrowers in various stages of mortgage delinquency.
-- Countrywide was among the first lenders to formally adopt the
Schwarzenegger principles to address the home retention needs of
California borrowers. The principles are consistent with Countrywide's
$16 billion home preservation program.
-- Countrywide has joined with the California Reinvestment Coalition
("CRC"), other lenders and servicers and two foundations to fund the
California Home Ownership Preservation Initiative which will increase
the number of mortgage counselors working to keep Californians in
their homes. The initiative will provide funds statewide responding
to the level of community need, and could create 50 or more new staff
positions at California mortgage counseling agencies.
-- In New York State, Countrywide partnered with Senator Jeff Klein
(D-Bronx/Westchester), Deputy Democratic Leader of the State Senate,
to announce the first of its kind initiative to keep New York
homeowners out of foreclosure. Together, Countrywide and Senator Klein
have begun reaching out to homeowners in the 34th Senate District who
are 60 days in default on their loan payments to help identify workout
solutions for them.
"We are eager to continue to work with housing industry professionals,
nonprofit organizations and government agencies to communicate to
homeowners across the nation that we often can prevent foreclosures, if we
are given the opportunity to work with them," said Bailey.
Countrywide extends its outreach campaigns to distressed homeowners in
their local communities with branch visits, seminars and counselor
training. The branch visits include small teams of counselors who travel to
Countrywide branch offices to meet with homeowners who need assistance.
Launched in 1999, this program targets communities with high delinquency
rates. Countrywide also participates in foreclosure prevention seminars for
borrowers in communities experiencing high rates of default.
Since counselors have a more holistic view of debt and credit, another
successful method of choice for reducing foreclosures is to provide
nonprofit counselors with training on the types of loan workout programs
available and the information/documentation to gather prior to contacting
the borrower's lender. Countrywide has trained more than 700 counselors in
California, Delaware, Florida Georgia, New York, Ohio, Oregon and Texas.
Borrowers experiencing a financial hardship and needing immediate
assistance can call Countrywide's Home Retention Division at 800-669-6650.
About Countrywide
Founded in 1969, Countrywide Financial Corporation is a diversified
financial services provider. Through its family of companies, Countrywide
originates, purchases, securitizes, sells, and services residential and
commercial loans; provides loan closing services such as credit reports,
appraisals and flood determinations; offers banking services which include
depository and home loan products; conducts fixed income securities
underwriting and trading activities; provides property, life and casualty
insurance; and manages a captive mortgage reinsurance company. For more
information about the Company, visit Countrywide's website at
http://www.countrywide.com.
SOURCE Countrywide Financial Corporation
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Related links:
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CONTACT:
media, 1-800-796-8448,
pressroom@countrywide.com, or investors, 1-818-225-3550, both of
Countrywide Financial Corporation
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