By Moe Bedard
Two days ago I wrote an article that summarized the complex details of President Obama’s Foreclosure Rescue Plan. My prediction was that incentivizing lenders to do the right thing would improve Main Street directly and not merely line the pockets of major lenders and financial executives. Today, two major lenders, Bank of America and Wells Fargo, both said they would extend their foreclosure moratoriums. I couldn’t be happier.
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Wells Fargo and Bank of America said Thursday that they would extend their foreclosure moratoriums in the wake of President Obama introducing his plan to help as many as 9 million home owners avoid foreclosure.
BofA said it would not proceed on any foreclosure proceedings until the eligibility details of President Obama’s Homeowner Affordability and Stability Plan are released.
Wells Fargo Home Mortgage, the nation’s largest mortgage originator, said it has extended its foreclosure moratorium on loans it owns to March 13 as it works to help implement the Obama administration’s foreclosure-prevention plan.
Both companies say they back the plan.
“We support the administration’s focus on affordability in the loan modification and refinance processes in order to achieve long-term mortgage sustainability for homeowners,” says Barbara Desoer, president of Bank of America Mortgage, Home Equity and Insurance Services.
Wells Fargo says it “supports the spirit” of the president’s program.
“To give at-risk customers time to explore the new solutions in the administration’s plan with us for loans Wells Fargo owns, we will not proceed with home foreclosure sales until at least March 13,” says Mike Heid, co-president of Wells Fargo Home Mortgage.
For loans that Wells services for other investors, the company says it won’t proceed with home foreclosures until a date allowed by those investors. Investors holding a “substantial portion of these loans” already have said they will honor a foreclosure moratorium until March 6, Wells Fargo said.
Once the full details of Obama’s plan are released next month, I anticipate a flood of news articles regarding major institutional changes. Expect Loanworkout.org to provide you with the updates as they come.
For now, I take the news from Wells and B of A as a positive sign that the President’s efforts are gaining some traction. Let’s hope the momentum continues.
Sincerely,
Moe
Source: Los Angeles Business: http://losangeles.bizjournals.com/
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