HOPE NOW Executive Director Faith Schwartz testified before the House Financial Services Committee regarding the significant progress the mortgage industry has made in foreclosure prevention. Schwartz emphasized the dramatic increase in loan workouts, the alliance's aggressive outreach and communications efforts, and the recent servicer guidelines adopted by all HOPE NOW members, which bring more transparency and clarity to the workout process.
Since July 2007, HOPE NOW has helped keep 1.7 million homeowners in their homes and avoid foreclosure.
‘One of the most important components of the guidelines is that HOPE NOW servicers are committing to timelines to respond to homeowners and third-party housing counselors,’ Schwartz said. ‘These timelines represent a powerful commitment from servicers.’
In addition, servicers servicing second liens are instructed to resurbodinate loans with respect to an existing first lien where the second lien-holder's position is not worsened as a result of a refinance or loan modification.
HOPE NOW servicers also must track and report performance to measure progress toward reducing foreclosures and increasing options for distressed homeowners. Reaching non-contact borrowers remains a major challenge, Schwartz noted.
‘This is a serious, committed effort that will continue until problems in the housing and mortgage markets abate,’ she added. ‘It is neither a silver bullet nor a magic solution, but this effort will continue to complement the efforts of legislators and regulators as we work through the housing issues.’
Source: HOPE NOW
