Company announces modification of more than 45,000 loans in 2007
CALABASAS, Calif. and NEW ORLEANS, La., Dec. 21 /PRNewswire-FirstCall/
-- Countrywide Financial Corporation (NYSE: CFC) and the Association of
Community Organizations for Reform Now ("ACORN") announced a joint
initiative to develop a blueprint for home retention programs, with a
particular focus on subprime borrowers. "Countrywide and ACORN share the
belief that subprime borrowers who have demonstrated the ability and
willingness to make payments should not face foreclosure solely as the
result of a rate reset," said Maude Hurd, National President of ACORN.
Countrywide and ACORN anticipate final release of the groundbreaking
provisions of the home retention initiative soon after the New Year. Both
parties believe that the plan will provide a road map and positive benefits
to subprime borrowers experiencing financial difficulties in this
challenging environment.
ACORN has been one of the nation's leading community organizations
fighting to retain the dream of homeownership for American families. From
working to pass groundbreaking legislation cracking down on predatory
lending to lobbying Federal Reserve Chief Ben Bernanke personally in an
effort to secure stronger protections for borrowers, ACORN was among the
very first to raise the specter of the looming subprime crisis more than a
year ago. ACORN has assisted thousands in recent months facing the problems
of rate resets and potential delinquencies by organizing Foreclosure Fairs
in the most impacted areas in country. Through ACORN's affiliate the
non-profit ACORN Housing Corporation, they have been providing free housing
counseling to low- and moderate-income homebuyers and assisted thousands of
distressed borrowers facing foreclosure through their Chicago call center.
Countrywide has been proactively working with its borrowers to find
home retention solutions. In November 2007, Countrywide completed 12,565
loan modifications for its customers, an increase of 1,473% from the same
time last year (799 modifications completed in November 2006). This brings
the number of modifications for the year to 45,735.
"During the first 11 months of 2007, Countrywide helped more than
69,000 customers retain their homes through solutions such as loan
modifications, long-term repayment plans, special forbearance and other
options," said Steve Bailey, Countrywide Senior Managing Director Loan
Administration. "We want to emphasize strongly that customers experiencing
difficulty making their loan payments should contact us as soon as
possible, even if they do not have a mortgage with a rate reset. Regardless
of the reason for the payment difficulties, Countrywide wants to try to
find reasonable solutions for our borrowers."
Countrywide provided the following information on the ongoing home
preservation efforts:
November Info Year-to-Date
Count % Count %
Loan Modifications 12,565 81.21 % 45,735 59.33 %
Long-term Repayment Plans 960 6.20 % 11,148 14.46 %
Special Forbearance 232 1.50 % 4,191 5.44 %
Partial Claims 139 .90 % 1,743 2.26 %
Other Workout Efforts 667 4.31 % 6,354 8.24 %
Total Home Retention Efforts 14,563 94.12 % 69,171 89.03 %
Short Sales 803 5.19 % 6,880 8.95 %
Deeds-in-Lieu 106 .69 % 1.039 1.35 %
Total Workouts 15,472 100 % 77,090 100 %
Borrowers experiencing a financial hardship and needing immediate
assistance can call Countrywide's Home Retention Division at 800-669-6650.
Those borrowers who might prefer to work with an ACORN Housing
representative can call (866) 67-ACORN.
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.
About ACORN
Founded in 1970, ACORN is the nation's largest community organization
of low- and moderate-income families, with over 350,000 member families
organized into more than 1000 neighborhood chapters in 103 cities across
the country. ACORN has long been a leader in assuring full compliance with
the principles of community reinvestment and financial justice to build
assets and stability in American's urban neighborhoods. ACORN stands for
the Association of Community Organizations for Reform Now.
(http://www.acorn.org)
SOURCE Countrywide Financial Corporation
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Related links:
http://www.countrywide.com
http://www.acorn.org
CONTACT:
Countrywide, 1-800-796-8448,
pressroom@countrywide.com; or Charles Jackson, +1-504-994-4669,
communications@acorn.org, or Austin King, +1-608-213-0104,
financialjustice@acorn.org, both of ACORN
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