Ohio Governor Ted Strickland threw down the gauntlet with the mortgage industry in October 2007.
When the industry ignored, he and Director of Commerce Kimberly Zurz wouldn’t be ignored. And Monday, the Save the Dream plan was announced in which nine lenders have agreed to join forces with the state.
“We are pleased that these servicers have joined in signing a compact,†Director Zurz said. “I hope that even more servicers will join their colleagues and the State of Ohio in this good faith effort to help Ohioans stay in their homes.”
The lenders that have agreed to the plan are:
- Carrington Mortgage Services
- Citi
- GMAC RESCAP/Homecomings Financial
- HSBC Finance Corp.
- Ocwen Financial Corp.
- Option One Mortgage
- Saxon Mortgage Services
- Select Portfolio Servicing
- Litton Loan Servicing
The planned goal, is that the move will reduce foreclosures as mortgage lenders work with borrowers through a six-step process.
- Engage in a substantial and large-scale loan modification effort for adjustable rate mortgage resets and sub-prime mortgages.
- Identify, evaluate and make good faith attempts to contact at-risk or defaulting borrowers as soon as possible.
- Modify loans to the extent permissible within existing fiduciary, contractual, or other legal obligations and in accordance with prudent mortgage lending and servicing practices.
- Create incentives for staff and foreclosure counsel to modify loans rather than foreclose.
- Report progress to the Ohio Department of Commerce.
- Enter into a non-binding agreement with the State for some defined period of time. (The agreements extend to June 30, 2009.)
Will it work?
Governor Strickland believes it will, “Home ownership is the very foundation of the American dream,†Strickland said. “I am very encouraged that these loan servicers have stepped forward and pledged to follow the common sense principles we outlined in our compact. These steps will reduce foreclosures in Ohio and bring stability to the families and communities affected by this crisis.”
Time will tell.
Toby good synopsis. I was pleasantly surprised to see so many on the list…surprised Key Bank is not there and I guess Nat’l City in too much difficulty to join in. I think everyone at least SOUNDS like they are taking a lot of the recommendations of the Task Force.
[...] for qualified homeowners in trouble. Shout out to Toby Boyce, a Realtor® in Delaware Ohio for his post on this effort by some banks in Ohio. Segnala [...]