About the Author
Moe Bedard is a leading expert and trusted authority in regards to loan workouts and loan modifications. Moe is the founder and President of Loan Safe Solutions, LoanSafe.org and the main contributor to LoanWorkout.org. He has blogged on this subject more than any other person on earth and has personally been involved in over 300 loan workouts and mortgage audits.
The Neighborhood Assistance Corporation of America (”NACA”) & Countrywide’s New Deal
When I heard about this, I was mad as hell (to say the least). I couldn’t believe Bruce Marks (a man who I have tremendous amount of respect for) would work any kind of deal with this company. Especially since NACA has been adamantly protesting and bashing Countrywide in the media.
Here are some Countrywide remarks from Mr. Marks:
In a Gazette interview, Marks described Countrywide as “the biggest and the worst predatory lender in the country.”
The company services 9 million loans across the US and is the “most aggressive in terms of putting people into mortgages that are unaffordable over the long term,” Marks said.
Countrywide’s standard operating procedure is to start borrowers off with around a 6 percent interest rate, and, over the course of three or four years, to raise the rate to around 12 percent, Marks said.
Countrywide has a 20 percent default rate for their sub-prime loans, Marks said
“We are here to shut them down, and look, there are no customers. Obviously, the word is starting to get out.”
“You should not be out there giving predatory loans to working people,” Marks told the Countrywide staff.
Some of my earlier posts reflected my feelings and most everyone that reads this blog knows how I feel about Angelo Mozilo and how he runs his loss mitigation department.
I have been trying to dig up whatever I can on the details of this new deal that NACA has worked out with Countrywide and how it will benefit homeowners. Finally, an article just came out on CNBC with Diana Olick that explains some of the questions I had for Mr. Marks.
Here are some quotes from that article:
According to the agreement with NACA, Countrywide has to take the most favorable (to the borrower) interpretation of the servicing agreement, and modify the loan to suit a certain affordability formula, designed by NACA. This modification includes lowering the interest rate to around a 5-6% fixed rate, and if this is still too much, lowering the actual principal of the loan.
How can that be when Countrywide is the servicer, not the investor in the loan??? Well, says Marks, according to the agreement, “if a NACA “Home Save” solution is denied by Countrywide or an investor, Countrywide shall provide the following in writing: the specific investor agreement reference identification, the investor trustee contact information, the investor’s reason for denial, relevant sections of the investor pooling and servicing agreement and the opportunity to appeal the investor’s decision based on the borrower’s risk of default, without adhering to a NACA “Home Save” solution.
WOW! That is some pretty good stuff right there. Finally some type of actual guidelines and policies. Good job Mr. Marks.
More from the article:
“The transparency is having a huge impact,” says Marks. They did 25 modifications on the first day. How can the investors afford it? Well, it’s still cheaper than foreclosing on the home, apparently, and the investors don’t want to have to tell NACA, and its strong political backers, that they’re denying a borrower a way out of foreclosure.
Marks says it was the servicers, like Countrywide, that were the real barrier, because the costs to do these modifications are not reimbursed by the investors; in other words, Countrywide has to eat the costs, which we have already seen in the most recent earnings report (Countrywide’s loss of $1.2 billion, thank you very much).
These costs are only for the “labor” involved and the “delinquency fees” they will have to waive. It’s not as if Countrywide will have to actually “owe” the investors if they forgive fees, lower interests rates or anything involved in modifying a mortgage. Investors will eat those losses.
This article make me feel like Mr. Marks has finally got somewhere with Countrywide. Hell, no one has “really” convinced a lender to do what NACA has. But this also raises some major concerns for me and also for thousands of Countrywide borrowers.
* How is NACA going to handle the thousands and thousands of people that need help and still offer their mortgage program to struggling homeowners?
* Where is the legal layer in your operation and are the “victims” of predatory lending going to get the help that they need. Even if it says Countrywide on the loan documents?
* What about the other 95% of delinquent Countrywide borrowers, will they get help?
* Is this like a lottery of sorts? Who qualifies? First come first serve basis?
The deal has left me torn. It’ better than nothing, yes. A LOT better. But I think Bruce Marks and NACA could have “worked out” a better deal that would benefit a lot more homeowners than what has been proposed.
Hopefully we will see more deals worked out in the future. But lets make sure that these deals “truly” benefit ALL homeowners and not just the lucky “few”.
Popularity: 32% [?]
Did they change the terms of your loan to an arm? This is too risky 
How about also arresting this Countrywide employee, Cheaters Among Us, Sue Barry, http://reno.broowaha.com/article.php?id=3415.Sue Barry has been a loan officer and ...
Oct 29th, 2007 at 4:49 pm
Moe, great synopsis of what can be a very complicated, confusing subject. Easy to read and understand even for me. I’ll be in training soon to become an Intervention Counselor Resource Provider through our local Community Housing Council, HUD and Realtors. May I use this post(all or in part) in presentations or promotions to “at risk” homeowners?
Oct 29th, 2007 at 8:04 pm
Thank Art!
You can use my post in part or whole but just give me credit. I’m glad you are doing the right thing and I wish you the best.
Oct 30th, 2007 at 1:41 pm
Well i did apply for a loan modificiation as i had said in the past. But get this i went to make my nov. payment and they will not accept it and when i log online says my acct needs special attention i call custmoer service and they have no idea. They transfer me to the workout deptt and i keep on getting disconnected. Its complete BS. So I just applied for a refi with eloan everything seems good house appraised at 265 with a refi of 224. Thats including the 7200 prepayment but anything to get away from countrywide.
Oct 30th, 2007 at 2:17 pm
finally got through. Now they havent recieved my paperwork this is my 4th fax. Since last tuesday
Oct 30th, 2007 at 10:13 pm
This is BS. Have you tried to call NACA? Let them know that your story is being chronicled and will be in the news, when done. Maybe that will help.
Oct 30th, 2007 at 10:14 pm
Send 3 copies. One by certified mail, one by fed ex and one by fax. That way they cannot say they did not get it!
Oct 30th, 2007 at 10:36 pm
Hey Moe,
Love your work. Don’t know if you ever visited this site http://www.excwinsider.com but it seems to have been shut down around Oct. 26-27 after Countrywide reported 3rd qtr losses. The site had comments from current and former employees and they gave a lot of detailed info.
Anways, just wondering do you have a mailing address for Countrywide and a phone number for loss mitigation that does not go to India? When I call HOPE at Countrywide they transferred me to India. Sorry but I have a really hard time understanding them and most of the time it sounds as if they are reading from script.
Thanks so much.
Oct 31st, 2007 at 12:06 am
Thanks HG!
Was it this sweat shop, mmmm, I mean call center that you called?
I would call http://www.NACA.com and see if they can handle dealing with Countrywide.
I’m sure that website was shut down over privacy laws. Good luck!
Oct 31st, 2007 at 2:29 pm
Just called again today and they said they received them on the 26th. Very weird because all this week prior they were saying they never received them. They said call back on the 15th to make sure i have a person assigned to me. We shall see!!!!
Oct 31st, 2007 at 5:09 pm
Yes we shall………….. I sure hope you get this all worked out.
Nov 8th, 2007 at 8:42 pm
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Nov 9th, 2007 at 8:34 pm
As a Countrywide customer, I had read something about this NACA…well, I certainly understand why an organization would exist to help folks out…but I just read your 10/29 entry above and I am disgusted by it. Why don’t people feel accountable for what they do? Yes, I’m sure there are instances where loan brokers force a loan on folks, but most of these loans were done by people who wanted the home they were purchasing, or needed cash out to consolidated credit cards and the like. Americans need to take responsibility for their own actions and not bank on some organization to bail them out.
Nov 9th, 2007 at 8:58 pm
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Nov 15th, 2007 at 10:31 pm
Dear Joseph, You need to understand that if there was no place to sell the risky loans, then the loans would have never been made abailable. Greed is what has cause all of the mess, not loan brokers, or borrowers who purchased homes, or even companies like Countrywide. I am a loan underwriter with 17 years expereince. I am now unemployed because stupid programs were created where people could use “stated income” and some times “stated assets” to buy pricple residences and even investment properties. Then 100% 80/20 programs came into play… no money down, what a risk. Then the fico scores for the programs got lower and lower. Underwriters like myself were outraged yet could not do anything about it because those were the “guidelines” and loans would be purchased by companies that sold to Wall Street, mortgage backed sedurities, all fueled by GREED ! Now there is a good chance I will lose 2 homes, yes I have 2, I saved and bought a home where I hoped to retire some day. I lived well within my means and now luckily I have saivings, but when it runs out I will be screwed as I will not be able to get a job in my industry for years. I have no degree and my resume says MORTGAGE UNDERWRITER, 17 years experience.. I am now clening houses to supplement my unemployment. So please understand this was all caused by GREED with Angelo types fueling and profiting by it. I was an employee of CFC for over 8 years ad know Mr. M and his bow tie personally. Greed and people who want it all and can not afford it. Our society has created way too much credit over the last 10 years. Look at the deficti. Please say a prayer for all these people inclding myself that we will find somewhere to live, there are thousands like me out of work underwriters with kids and pets where are we to go ?????
Dec 4th, 2007 at 11:08 am
Alan Keyes shines at Values…
Alan Keyes shines at Values Voter Debaterenewamerica.us, DC -3 hours agoAt that time, in an interview on MSNBC Barack Obama was asked…
May 10th, 2008 at 9:52 am
You have one year from the date of rescission notice to file a lawsuit in the courts to enforce the rescission but, if you are under foreclosure now, you must move fast! If you have received the notice of sale, you must consult your local court law library for the laws, talking with the law clerks who should be able point you to your local laws. Then contact the courts and notify them immediately of your intent to defend against the action and at that time, present the complaint onto the court as your defense or file the complaint as soon and as quick as you can. I am not a lawyer but am suing my lender for mortgage loan document forgery and mortgage fraud, the dirty rotten sobs have perpetrated against my once very good credit. RESPA & TILA laws are very complex, you really should try to find an honest lawyer, though, we have had no luck here in Maryland because most are corrupt or work for the creditor behind your back or want to lend you the same creditors money or, if they are not currently working for the creditor, they will be by the time it is all over so be careful if the lawyer takes your case and then does nothing, this is what they do, the corrupt lawyer usually will fleece you for every penny you have so you then have no….money and then, after he strips you of the money, he allow the trustee to sell the property or, encourages you to refinance, never assisting you with the RESA and TILA lawsuit, or, this is what has happened to us! Be careful of corrupt bankruptcy judges and trustees if you are thinking about going this way. There is a more sophisticated consumer scam known as the bankruptcy foreclosure scam wherein your lawyer, the bk trustee and judge conspire to steal your property and force you into a life of high cost credit! How the scam works, you innocently find one of these corrupt lawyers for whom most practicing bk in our area are dirty, rotten and corrupt sobs because they must join the corrupt thing known as the “bankruptcy club”,(do your research, this is a club of corrupt judges, trustees and outside lawyers who serve victims up to these clubs); the would be consumer lawyer generally lends money for your….lender with the lawyer failing to ever tell the consumer they have a conflict of interest. Once the corrupt lawyer files the stay for you the victim, he then does nothing…..tells you nothing, does not assist with the schedules, files nothing but begins to work with the corrupt trustee wherein they both collude together to harm you under the courts eyes with the corrupt judge presiding over the whole thing but, essentially, they collude to have the case dismissed making you out to be the villain so they have scared you in the judicial eyes of all courts. If you make to the 341 meeting, you are then met by the corrupt trustee who also, without you knowing, works for your same lender or most of your creditors, and this corrupt trustee ignores your TILA and RESPA claims; and, the screwed up BK draconic laws, essentially allow him to ignore your claims; he will have no part of litigating your claim and will shut you up but quick! The lender now has you where he wants you, in the bk club…..with the judge being placed there to hear a particular lender/investment banks cases exclusively. The corrupt judge, then works in tandem with your lawyer who is to first get you to refi the loan in order to cause you to waive your legal recourses; should you have figured out what is going on, and refuse the refi, then the lender seeks the lift stay, your lawyer may appoint himself as special counsel to the trustee, to make sure you are silenced, and then the judge orders the property sold; be very, very, very careful because you are dealing with the mafia and consumers and honest lawyers have been killed! If you are already there, or in bk and this is happening, motion to dismiss your case and file lawsuit in your circuit court; the courts cannot force a discharge on you. Good luck, Best R, k
Jun 16th, 2008 at 12:17 pm
There is only one way for homeowners to get out of their mortgages, vigorously and aggressively. I am a homeowner and I am currently going through foreclosure proceedings and I continue to blog what can seemingly be the best help for us homeowners in need of help now-not later…
I have joined an on-line homeowners association with members dedicated to help each other to pay our mortgages and we are over 4,800 members now and growing. The on-line nationwide fundraiser that will be conducted to save all homeowners in need and who are members of OMASH.org, will save their homes and we are glad that as homeoewners helping homeowners, we found a way to get through this and save ourselves.
Any homeowner who is facing default and foreclosure should review this site and become a member of homeowners helping homeowners, it’s our only way out and being able to live again.
Blessings.
See http://www.OMASH.org