Industry News

Countrywide plans $6.2 billion in loan modifications

Program would help fraction of 530,000 delinquent borrowers

Countrywide Financial Corp. said it is prepared to modify the terms of $6.2 billion in mortgages, in order to help 10,000 delinquent borrowers get current on their loans and prevent 20,000 borrowers who are up to date on their loans from defaulting when their payments adjust. At the end of September, Countrywide reported 5.87 percent of the 8.98 million mortgages it services were delinquent, or nearly 530,000 loans. Countrywide said today it has completed 20,000 loan modifications so far this year. While the loan modifications announced by Countrywide affect only a small percentage of loans in its $1.5 trillion servicing portfolio, the company said it has also created a special refinance unit to contact borrowers to offer refinancing into prime or FHA-backed loans. Some borrowers with credit issues may qualify for expanded criteria programs offered by Fannie Mae or Freddie Mac, the bank said. Countrywide said it helped 31,000 borrowers refinance into prime, fixed-rate loan...