Nine Mortgage Servicers Sign Pact to Help Ohio Homeowners

April 7, 2008 No Comments »

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Ohio Governor Ted Strickland announced today that nine mortgage loan servicers have signed the “Compact to Help Ohioans Preserve Homeownership,” a pledge to work with the state to stem a rise in foreclosures.

The loan servicers include Carrington, Citi, GMAC/ResCap, HSBC, Ocwen, Option One, Saxon, Select Portfolio Servicing, and Litton Loan Servicing.

All nine have pledged to take part in a large-scale loan modification effort aimed at corralling resetting adjustable rate mortgages and subprime mortgages.

The companies have agreed to make good faith attempts to contact at-risk homeowners, to create incentives for staff to counsel borrowers and modify loans, and to report all progress to the Ohio Department of Commerce.

The servicers will also enter into a non-binding agreement with the state for a defined period of time, with the agreements currently extended until June 30, 2009.

Ohio has been hit hard by the ongoing mortgage crisis, consistently having a place in the top ten in terms of total foreclosure filings and foreclosure rate, according to RealtyTrac data.

(photo: dfinnecy)

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