Hope Now Assists Over Half a Million Borrowers

February 6, 2008 No Comments »


The Hope Now group said today that it helped 545,000 subprime borrowers during the second half of 2007, up from its January estimate of 370,000.

The alliance attributed the marked increase to having 14 loan servicing companies on hand, up from just nine previously.

Of the borrowers who received assistance, 150,000 were given permanent-loan modifications, such as low-rate fixed mortgages, while the large majority, 395,000, received less favorable repayment plans.

The numbers work out to roughly 7.7 percent of the 7.1 million subprime home loans outstanding as of September 2007.

In the previous release, it was estimated that there were 250,000 formal repayment plans and 120,000 loan modifications.

The group also helped 324,000 prime borrowers during the same period, with 20.7 percent of them receiving a loan modification.

The mortgage industry is “working hard to help more and more homeowners who are in difficulty, but we know there is much more to be done,” Faith Schwartz, the coalition’s executive director, said in a statement.

Despite the seemingly good news, it is unclear how many borrowers will actually be able to keep up with their new mortgage payments, as recent studies have shown that a lot still end up defaulting.

Members of Hope Now include Bank of America, Countrywide Financial, Litton Loan Servicing, the Mortgage Bankers Association, Washington Mutual and Wells Fargo, to name but a few.

(Photo: myklroventine)

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