OK folks- not to sound cynical here but...
If 11 of the largest servicing companies are on the coalition, do you think they are really going to expose their own illegal activities, or use this as an opportunity to cover them up? Good grief.
I smell white wash and very little real change for those of us who have been subjected to servicing fraud. In fact, I bet one of the stipulations for any 'relief' that may be offered is that the homeowner will have to sign a release!! Anybody want to bet that I am wrong???
I truly hope that this is a real solution aimed at really helping people who have been wronged (whether in the origination, servicing, or any other point), and not bailing out people who simply speculated and lost! There is a difference, and so far I am not sure the press is getting it, and I doubt this coaltition will do anything to address that!
White House forms mortgage coalition
Group aimed at helping U.S. homeowners facing foreclosure
The Associated Press
Updated: 10:51 a.m. ET Oct 10, 2007
WASHINGTON - President George W. Bush's administration announced a new mortgage industry coalition on Wednesday aimed at helping U.S. homeowners avoid being trapped in a rising tide of foreclosures.
Treasury Secretary Henry Paulson said the initiative would help coordinate efforts by financial companies to help an estimated 2 million homeowners whose introductory mortgages with low rates are now resetting at much higher rates, greatly increasing the risk they will default on the loans.
"A combination of stagnant or falling house prices, low down payment mortgages and resetting adjustable-rate mortgage rates are creating real challenges for many American homeowners," Paulson said in a statement.
He said that 11 of the largest mortgage service companies, representing 60 percent of all mortgages in the country, had agreed to join the new coalition. Other members will include mortgage counseling agencies, investors and large trade organizations.
"These leaders recognize that by working together, coordinating and scaling up their activities, they will be able to work toward the goal to help more homeowners," Paulson said.
The new initiative, which has been dubbed HOPE NOW, follows an announcement by Bush on Aug. 31 that his administration was making changes in the Federal Home Loan Administration insured-loan program so that more people could qualify for FHA-insured loans.
Democrats, however, have criticized the administration, saying the actions so far have been too little and too late to significantly address a growing foreclosure crisis as American homeowners struggle to deal with sharp increases in their adjustable mortgage payments.
Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.