Released: October 24, 2007

Countrywide To Offer To Rework 82,000 Loans

Source: Dina ElBoghdady, Washington Post

Countrywide Financial, the nation’s largest mortgage lender, said yesterday that it will offer to refinance or modify about $16 billion in home loans through the end of 2008, a move that could affect 82,000 borrowers.

Lenders have come under increasing pressure from policymakers and consumer advocates to help borrowers who are struggling to hold on to their homes. Critics say lenders have done little to stem an alarming rise in foreclosures since problems surfaced earlier this year, fueled by risky, or subprime, borrowers. They want lenders to restructure the debt in a way that makes the loans affordable.

“Lenders have been paying a lot of lip service to loan modification in particular, but we haven’t seen them do a lot about it,” said Guy Cecala, publisher of the trade publication Inside Mortgage Finance. “Now the largest player in the mortgage market is taking first steps, and that’s something.”

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