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Contact: Austin King, Director, ACORN Financial Justice Center, (608) 213-0104
Hope on the Horizon: Mortgage Industry Warming Quickly to Obama Foreclosure Reduction Plan
In the first effort of its kind, ACORN's survey of all major mortgage servicing companies finds broad participation in Obama's Foreclosure Plan
March 19, 2009 - In the first effort of its kind, ACORN (Association of Community Organizations for Reform Now) surveyed all major mortgage servicing companies in the nation, and has found that at least 76% of outstanding mortgage loans are serviced by companies who have committed to implementing the Obama plan. ACORN expects further progress in the coming weeks as the Obama Administration releases the contracts mortgage servicing companies will sign to participate in the program. ACORN will continue to encourage all mortgage servicers to join the program, with plans to target those outlier companies that refuse to engage in sensible foreclosure prevention.
Just a week after President Obama's Administration revealed the details of his "Making Home Affordable" plan to prevent unnecessary foreclosures, leading mortgage servicing companies are already committing to the plan in droves. This industry momentum signals strongly that the Obama plan will achieve near-universal industry consensus on foreclosure prevention protocols in short order. These protocols, based on the pioneering work of the FDIC, require due diligence to be performed on each loan before foreclosure to evaluate whether a loan modification to affordable terms would be less costly. Any servicer that takes incentives offered under the Obama plan or is owned by a company receiving TARP funds going forward will be required to do this due diligence.
See a copy of the whole report, "Hope on the Horizon", by clicking here.