WASHINGTON, Oct. 23 /PRNewswire-FirstCall/ -- Countrywide Financial
Corporation (NYSE: CFC) and the Neighborhood Assistance Corporation of
America (NACA) announce a joint initiative aimed at their common goal of
preserving homeownership. NACA will assist Countrywide borrowers facing
financial difficulties in communities across the country to identify
solutions to help them save their homes.
Representatives of NACA and Countrywide, as well as several borrowers
receiving help through this program, will comment on the new initiative at
a news conference on Wednesday, October 24, at 2:00 pm in the Edward R.
Murrow Room of the National Press Club.
While there is a lot of talk about the at-risk homeowners, NACA and
Countrywide have met and developed an effective solution for some borrowers
facing a crisis. Under this 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.
The agreement leverages Countrywide's market leading home retention
programs and NACA's unique model for counseling borrowers. The program is
based on NACA's comprehensive Home Save approach that includes individual
counseling and development of a documented Affordability Budget. NACA will
work with Countrywide borrowers who come to NACA for assistance to develop
the most effective plan to save their homes, then submit the plan to
Countrywide for approval and implementation.
"NACA's Home Save approach provides unprecedented options to working
people at risk of foreclosure." States NACA CEO Bruce Marks. "The
Countrywide agreement has already had a huge impact with homeowners having
their loans restructured to as low as five percent."
"Both Countrywide and NACA want to make homeownership a reality and
homeownership preservation a priority," said Sandor Samuels, Executive
Managing Director of Countrywide. "NACA's methodical approach to counseling
and family budgeting will be invaluable to Countrywide borrowers who are
struggling to keep their homes."
Homeowners like Darrell Beringer agree. "I was about to lose my house
because I couldn't pay the higher interest rate," he said. "The arrangement
between NACA and Countrywide allows us to stay in our home and in the
community that we call our own."
Currently, Countrywide has 2,700 home retention specialists who work
directly with borrowers, and works closely with dozens of borrower
counseling organizations. The NACA agreement will enable Countrywide to
leverage additional resources of NACA's 33 local offices across the country
to help more of its borrowers remain in their homes.
"In my discussions with executives at Countrywide, it became very
apparent that they are serious about home preservation," said Bruce Marks,
Chief Executive Officer, Neighborhood Assistance Corporation of America. "I
hope that this groundbreaking alliance between NACA and Countrywide will
provide a framework for other lenders around the country to help their
customers maintain their dream of homeownership."
The struggle for many lenders has been communicating with the borrower.
Although Countrywide contacts borrowers via telephone and mail, many
borrowers avoid speaking with their lender. Working with nonprofit
counseling agencies such as NACA provides borrowers an alternative form of
assistance.
Key policymakers, including Senate Banking, Housing and Urban Affairs
Committee Chair Chris Dodd (D-CT) and House Financial Services Committee
Chair Barney Frank (D-MA), have called for these kinds of alliances and
cooperative efforts to find solutions that keep as many people as possible
in their homes.
Borrowers seeking foreclosure prevention tools and resources can:
* Visit Countrywide's H.O.M.E. (Home Ownership Mortgage Education) web
site at http://www.HomeByCountrywide.com or call 1-800-866-6650.
* Visit NACA at http://www.naca.com or call 1-888-302-NACA.
About Countrywide Financial
Founded in 1969, Countrywide Financial Corporation is a diversified
financial services provider and a member of the S&P 500, Forbes 2000 and
Fortune 500. Through its family of companies, Countrywide originates,
purchases, securitizes, sells, and services prime and nonprime 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.
About the Neighborhood Assistance Corporation of America
NACA, a national non-profit community advocacy and homeownership
organization established in 1988, has been the lead organization in the
fight to identify, expose, and oppose predatory lending and exploitive
lending practices. NACA first exposed Fleet Bank's lending abuses in 1991,
followed by numerous other campaigns against companies that victimize low-
and moderate- income people pursuing the dream of homeownership.
NACA provides one mortgage which is the best in the country requiring
on downpayment, no closing costs, no points, no fees, no perfect credit at
a below interest rate currently 5.325% 30 year fixed. NACA has $10 Billion
committed to this mortgage with more than 30 offices across the country
providing working people and an unmatched program and national model for
doing mortgage lending the right way. NACA's program and advocacy have been
featured in the national and local media nationwide. In April 2007, in
response to the subprime lending crisis, NACA committed One Billion dollars
to refinance homeowners out of their unaffordable loans, constituting the
largest commitment to homeowners to date.
SOURCE Neighborhood Assistance Corporation of America (NACA);
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Related links:
http://www.countrywide.com
http://www.HomeByCountrywide.com http://www.naca.com/
CONTACT:
Darren Duarte of NACA, +1-617-250-6222; or
Rick Simon of Countrywide, 1-800-796-8448
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