Six Leading Mortgage Servicers Announcing Project Lifeline
Statement by Secretary Henry M. Paulson, Jr.
on New Private Sector Effort to Reach Homeowners Facing Foreclosure
Washington, DC– Good morning. Thank you, Secretary Jackson, for joining us. We are going to provide an update on the HOPE NOW alliance’s efforts to help struggling homeowners and – as Floyd Robinson of Bank of America, speaking on behalf of six leading mortgage servicers, will announce – an additional, important effort targeting those facing the greatest, immediate risk of losing their home.
Hope Now Program On Track To Assist 370,000 Borrowers
WASHINGTON, D.C. – Secretary Henry M. Paulson, Jr. issued the following statement today regarding the HOPE NOW alliance’s progress report on the number of homeowners helped since the organization’s inception. The report indicated that during the fourth quarter, following the creation of the alliance, mortgage servicers in the organization were modifying subprime loans three times faster than in the third quarter. The industry assisted 370,000 homeowners during the second half of 2007. Additionally, more than 16 percent of borrowers responded to 233,000 HOPE NOW outreach letters sent in November by contacting their servicers, far more than the normal letter response rate of 2-3 percent for delinquent borrowers.