- Company's $16 Billion Home Preservation Program Inline with New National
Program -
CALABASAS, Calif., Dec. 6 /PRNewswire/ -- Countrywide Financial
Corporation (NYSE: CFC) applauds the Administration's endorsement of the
industry's HOPE NOW initiative to provide loan modification assistance to
borrowers at risk of delinquency due to interest rate resets. The company
particularly acknowledges Treasury Secretary Paulson for the leadership he
has demonstrated in seeking ways that many interests can work together on a
solution to assist many of the borrowers who are facing challenges in
unprecedented numbers today.
Countrywide is a founding member and strong advocate of the HOPE NOW
Alliance of servicers, investors and counseling groups convened by
Secretary Paulson.
"Countrywide is committed to being part of the solution and we strongly
support a systematic approach to serving borrowers who may face difficulty
in making mortgage payments," said Steve Bailey, Senior Managing Director,
Loan Administration. "Secretary Paulson has listened to all parties with an
open mind and has shown keen interest in finding suitable and workable
solutions that address the needs of at-risk borrowers, preserve
homeownership, and help stabilize neighborhoods."
Countrywide, like other HOPE NOW Alliance members, has taken part in
discussions with Secretary Paulson and other regulators, and fully briefed
the Secretary and his staff at the Treasury Department on efforts the
company is making, on its own and in partnerships with government and
non-profit organizations, that serve the HOPE NOW goal.
The HOPE NOW initiative aligns with facets of Countrywide's own $16
billion home preservation plan announced in October. Countrywide's program
includes loan modifications and other approaches for borrowers who are
making payments on time but may be at risk at the time the interest rate
resets, as well as borrowers who have become delinquent as the result of a
recent rate adjustment. The Company already has begun reaching out to these
customers.
Countrywide analyzed its loan portfolio of borrowers facing a rate
reset through 2008 to determine how many mortgages could benefit from the
$16 billion home preservation program. Through this process, the company
has identified 82,000 borrowers that will be eligible for assistance in a
systematic and streamlined approach through refinancing or loan
modifications.
"Streamlining loan modifications for these at-risk borrowers with
strong payment records and certain identifiable situations will allow
Countrywide's 3,000-member Home Retention team to concentrate more
attention on borrowers who may be facing delinquency for other reasons and
provide individualized counseling and solutions," Bailey said.
Countrywide encourages borrowers who face payment difficulties to call
our Home Retention Division at 800-669-6650, or the HOPE NOW hotline
operated by the Home Preservation Foundation at 888-995-HOPE.
About Countrywide
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 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.
This Press Release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended,
regarding management's beliefs, estimates, projections, and assumptions
with respect to, among other things, the Company's future operations,
business plans and strategies, as well as industry and market conditions,
all of which are subject to change. Actual results and operations for any
future period may vary materially from those projected herein and from past
results discussed herein. Factors which could cause actual results to
differ materially from historical results or those anticipated include, but
are not limited to: increased cost of debt; reduced access to corporate
debt markets; unforeseen cash or capital requirements; a reduction in
secondary mortgage market investor demand; increased credit losses due to
downward trends in the economy and in the real estate market; increases in
the delinquency rates of borrowers; competitive and general economic
conditions in each of our business segments such as slower or negative home
price appreciation; changes in general business, economic, market and
political conditions in the United States and abroad from those expected;
reduction in government support of homeownership; the level and volatility
of interest rates; changes in interest rate paths; changes in debt ratings;
changes in generally accepted accounting principles or in the legal,
regulatory and legislative environments in which Countrywide operates; the
judgments and assumptions made by management regarding accounting estimates
and related matters; the ability of management to effectively implement the
Company's strategies; and other risks noted in documents filed by the
Company with the Securities and Exchange Commission from time to time.
Words like "believe," "expect," "anticipate," "promise," "plan," and other
expressions or words of similar meanings, as well as future or conditional
verbs such as "will," "would," "should," "could," or "may" are generally
intended to identify forward-looking statements. The Company undertakes no
obligation to publicly update or revise any forward-looking statements or
any other information contained herein.
SOURCE Countrywide Financial Corporation
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Related links:
http://www.countrywide.com
CONTACT:
media, Countrywide Financial Corporation,
1-800-796-8448, pressroom@countrywide.com, or investors, Investor
Relations of Countrywide Financial Corporation, +1-818-225-3550
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