Industry NewsMortgage

Loan servicers sign on to Bush’s HOPE NOW plan

Goal is to improve outreach to troubled borrowers

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Eleven loan servicers that handle an estimated 60 percent of U.S. mortgages have agreed to participate in a Bush administration initiative to expand outreach to borrowers who may face foreclosure. The administration is billing the HOPE NOW partnership as a plan to coordinate the efforts of mortgage counselors, servicers, lenders, investors, and state and local government to reach as many homeowners as possible to prevent foreclosures. Announcing the partnership today at a Washington, D.C., press conference, Treasury Secretary Henry Paulson applauded the companies who have signed up so far, but said greater participation is needed "to get to all those that need help as quickly as possible." Others have good reason to join the alliance, Paulson said in a statement, "because minimizing foreclosures benefits lenders and investors as well as homeowners." The Bush administration in August announced that it would allow the Federal Housing Administration to guarantee to refinance loans for bor...