CALABASAS, Calif., Oct. 23 /PRNewswire/ — Countrywide Financial Corporation today announced a comprehensive home preservation program to reach out to borrowers at-risk of default. Countrywide will launch an outbound calling initiative to refinance or modify up to $16 billion of Countrywide loans for borrowers who are facing an adjustable-rate mortgage reset through the end of 2008.
“Countrywide is committed to helping its customers sustain homeownership,” said David Sambol, President and Chief Operating Officer of Countrywide. “Unprecedented times call for unprecedented remedies. We are determined to assist borrowers who have the willingness and wherewithal to remain in their homes, but need a little help to do it.”
“Countrywide believes that none of our subprime borrowers that have demonstrated the ability to make payments should lose their home to foreclosure solely as a result of a rate reset,” said Sambol. “This is yet another step in our continuing effort to identify and improve existing programs that assist our customers.”
Countrywide will offer tailored solutions to its borrowers to proactively address the rising foreclosure rate. Dedicated teams of Countrywide specialists will contact customers who are current in their payments and approaching a rate reset to ascertain the borrowers circumstances and advise them about refinance and home preservation options. Countrywide’s new and enhanced programs include:
Refinance Program -- For Countrywide borrowers currently in a subprime loan with a strong payment history, a special refinance unit has been created to contact approximately 52,000 borrowers to offer refinance options. The company has identified and will work to refinance approximately $10 billion of mortgages. For this group, Countrywide will offer borrowers options to refinance into prime or FHA loans. For those with credit issues, Countrywide will offer Fannie Mae or Freddie Mac's expanded criteria programs. Countrywide has a strong track record of successfully transitioning borrowers from subprime products to prime loans. Year-to-date, more than 31,000 borrowers have refinanced to prime fixed rate loans totaling more than $5 billion. Modification Program -- Countrywide is working to identify and contact prime and subprime borrowers who are current but unable to qualify for a refinance and are likely to have difficulty affording an upcoming reset. Countrywide will supplement its early notification letter to borrowers by calling no later than three months prior to the reset to determine their financial circumstances and develop affordable solutions. As a result of this initiative, Countrywide will successfully modify $4.0 billion in loans for approximately 20,000 borrowers in an existing adjustable rate mortgage through the end of 2008.
Additionally, for subprime borrowers who are currently delinquent and are experiencing financial difficulties as a result of a recent reset, Countrywide has implemented a simplified loan modification process. Countrywide is in the process of sending letters to these borrowers offering a pre-determined, pre- approved rate reduction. It is anticipated that 10,000 additional borrowers, totaling $2.2 billion, will receive modifications through this initiative by year-end.
Home Preservation Efforts So far this year, Countrywide's existing home preservation efforts have helped more than 40,000 borrowers stay in their homes including the completion of 20,000 loan modifications. Countrywide's comprehensive efforts help borrowers facing financing difficulty. These include: -- 2,700 highly-trained home retention specialists that work with delinquent borrowers by providing payment alternatives in order to help them retain their homes. -- Countrywide borrowers with an impending rate reset are sent a letter 180, 90 and 45 days prior to the rate increase to ensure that borrowers understand their options. -- Outreach to distressed homeowners in their own communities by setting up face-to-face meetings through various means; hosting seminars around the country to help borrowers avoid foreclosure; participating in foreclosure prevention workshops, teaching them about possible foreclosure scams; and offering loan workouts on- site. -- Working with non-profit and community groups across the country to create grassroots efforts to contact and counsel distressed borrowers, particularly in communities that are experiencing unusually high foreclosure rates.
Countrywide encourages consumers who face an increase in their mortgage payment or fear falling behind on their payments for any reason to call the Countrywide home retention team at 800-669-6650.
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 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.
Didn’t Countrywide just announce that it had terminated some 12,000 employees? Based on the information that I have, the press release numbers are sheer puff. What would be helpful is to know: the total number of loans that are in payment default for 30 days, 60 days, 90 days, 120-plus days; and the total # of loans in active foreclosure actions; the structure of the workouts being offered (how late payment, inspection fees, bpo charges, force placed insurance charges, foreclosure and other collection charges are being dealt with) and real numbers by state. Without such transparency then Countrywide is just puff, puff, puffing away. Where is the training to do the loss mitigation? What loss mitigation guidelines are in place? Can borrowers get access to the loss mitigation options in writing? And, of course, we know that the homeowners are expected to waive and release every single legal right they have as part of the program and the homeowners are never afforded access to lawyer advice. So much for powerful consumers.
I had to publish this as a post. Great points as always. Thanks!
Hey Moe i just called countrywide and they said im prequalified for a loan modification just have to fax in documentation to them. Meanwhile about a month ago they said im ineligable because i would have to be a month late. HMMMMMMM
Hi Moe, just wanted to let you know that the countrywide “workout department” is located in Lancaster, Ca., and the extension is 4949.
swizz, what number did you call?
Great thanks Tracy! Did you call them and what was your results?
You’re prequalified! hmmmmmmmmmm…that will be the standard script when you call. What does that mean? PLEASE let me know what happens!
main number i think it ends in 0102 not home right now. Then asked for loss mitigation.
I got ahold of someone today.
All of a sudden it is easier to get through.
They asked a bunch of questions and calculated the average household expenses.
They only had 2 figures to choose from. Either the “lower” end which was around $2000 or the “higher” end which was around $4000.
Neither was accurate but $4000 was closest so I chose that one.
That left a negative of $239 after the new payment and a positive of $1000 after the pre-adjusted payment.
She could not give me an answer as to whether the borrowers qualified for a modification or not.
They will be contacted within 30 days with an answer.
I am now out of the loop.
Be sure and have the following information available when you call-
Gross income and net income on a weekly, bi-weekly and monthly basis
Total credit card payments
Total student loans
Total secured (car, 2nd mortgage) payments
The rest of the expenses are pre-calculated based on some form they have provided by the Dept. of Labor.
If there are arrearages they are going to want a payment.
I did this last week with another lender and they gave an approval on the spot.
Well i was told to call yesterday to make sure forms were received. But they didnt have them called again today and lady said to call back monday or tuesday and dont fax them again because that will just slow up the process. Figures!!!!
Great Im going to publish this as a blog post. You’re awesome!
Hey Moe,
I have used the countrywide workout department and found out recently that they ruined all our chances at refinancing. Last year we became late by 60 days and we went through the so called “work out” department. Which seemed like a great solution. If we paid an inceased amount for 6 months they agreed to role our past due amount into our existing mortgage priciple. At five months they called us and said we were done with our workout agreement. Unfortunately now, this year, our ARM adjusted and our payment went from 2,700.00 to 3,500.00 and we cannot refinance because of our past that they report as 60 days late for a total of nine months while we were paying our workout agreement. How ironic?!? Now we are stuck paying our high interest rates until we hit a year past our last late payment. That will be May 2008. Thanks countrywide. My word of advise…. don’t use the workout department because they will continue to report you to the credit bureaus as late until the contract is up. For us it was 9 months of 60 days late on our credit report. No one will refinance us. We have almost 50% equity in our home. FHA Secure is only for “good credit rating” if we had great credit we wouldn’t need help. I should have barrowed the money from my parents!
Sorry to hear about your circumstance and dealing with Countrywide. Have your tried calling http://www.NACA.com. They now have a ‘special’ deal with them and maybe they can advocate your case for you. I also suggest speaking an attorney that can assist you. You may have an unlawful agreement and you may have signed your rights away when they gave you that bogus deal. You need to get that loan modified and you need to raise heel until you do. Call NACA and please report back with what they tell you. My eyes are on them and Countrywides new relationship and I need feedback to see if they are REALLY assisting homeowners such as yourself.
I read the guidelines at NACA and it looked like my borrower’s loan amount exeeded the allowable loan limits for California.
Maybe that’s just for new loans, I will give them a call. Thanks.
After re-reading the CW PR and reading between the lines, it sounds like they are poised to do even more refinances and make even more money.
Imagine if they become the only lender to offer the new FHA secure program and only on a retail level.
I thought FHA secure was not FICO sensitive?
You’re welcome!
Yes, these lenders will have a MONOPOLY and that is what we DO NOT want. We need to put the power back in the peoples hands.
All FHA loans are not FICO driven. I always considered FHA to be common sense loans. Before the FHA Secure, FHA would not allow lates on your mortgage but with the FHA Secure you can.
Has anyone had any good dealings with CW Hope dept? Does having a lawyer assist you with the loan modification process really make a difference? Thanks
A lawyer can help. If you qualify, I would seek legal aid or a pro bono attorney. If not then seek an attorney first and then go from there. There have been some mild successes stories but if you look at my blog and posts, they are far and few in between. Doesn’t mean you can’t get one. So work hard and out your best foot forward and get ready to fight!
Countrywide is very clever in their modification agreements they have you sign, so read it carefully. Basically the attorney I had look at it said the clause in “fine print” stated they can make any changes, any time, at their will. As for you Tim, try contacting David Fyke, he is the supervisor of the HOPE team and is by far the ONLY nice person to deal with there. I cannot say he can for sure help you, but he goes out of his way to try (seriously). Unfortunately, his clout was not enough to assist my family, but I am willing to help anyone I can avoid what we are going thru!! His phone # is 805-577-3688.
Wow, that is great information. I’m sure Davids phone is going to blow up now! Thanks, I think I like you. Please stick around
Moe, I will stick around as long as I still have a roof over my head, getting down to 36 days give or take. Anyway I can help anyone else from going thru this I WILL!!!
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My mortgage is coming up for a change in the ARM in October,I have a 3rd party from California that has contacted me saying I need his representation in order to get a modification, that Countrywide will not work with me unless I am late, as of yet we have not had a late fee we just want do not the ARM that is due to go to 9.50 when we already stretched to the max. The rep is from Homestead Modification Services who says the time is now to get this process started. His services come with a fee, but guarntees me that they refund $995.00 if they are not succesfull. Any ideas?
Never heard of them and would never recommend using a company like this, unless they are a law firm or non-profit. Use an attorney if you decide to hire a third party, plus you may have legal viloations on your loan that you can use as leverage against Countrywide.
THANK YOU, THANK YOU, THANK YOU for the home retention program. I called and had an exceptionally nice young man who gave me “productive information” about my foreclosure, financial workout status. I gained more specific and necessary information than I did speaking with 2 obnoxious bimbos yesterday for over an hour. The home retention fax number is: 800-658-0395. The customer service number to inquire about taxes and insurance is:
1-800-669-6607. If anyone knows of a website that specifies my legal rights to information from CW about the ongoing status of my loan being reviewed, I would be grateful. I was told yesterday there is no one to talk with and no info will be provided as an update. Today, Willie told me I am to be recieving phone calls. He also told me that I had not been assigned a negotiator yet and could not accertain from the notes, what I was being reviewed for. The bimbos lied their a_____ off; they said foreclosure was still going to take place 4/6. Ha!! Bimbos didn’t know that I had been granted a 30d stay. Am checking out bankruptcy just in case. Found interestin article that states Bank of America is planning to use foreclosure losses as a tax write off. Anybody filing any lawsuits???? Good luck to all of you!