HOPE NOW Boasts 1 Million Mortgage Loan Modifications in 2008, Promises More in 2009

Nearly 3 million homeowners will enjoy Christmas in their own homes this year because of the cooperation and programs of the HOPE NOW program. HOPE NOW closes out 2008 with nearly 1 million in loan modifications. This alliance created an unprecedented effort by private mortgage servicers, counselors, and investors to stem the rising tide of foreclosures.

Developed as a private sector alliance to help prevent foreclosures and keep homeowners in their homes, HOPE NOW announced that they are expecting to double their 2008 foreclosure prevention results in 2009.

"HOPE NOW deserves a great deal of credit for the nearly 3 million foreclosures it will have prevented by the end of 2008," said Steve Bartlett, president and CEO of the Financial Services Roundtable. "The weak US economy will present additional problems in 2009 and HOPE NOW's success this year will be the solid foundation needed to meet those challenges."

In June of 2008, HOPE NOW alliance members created a set of guidelines that committed servicers to a streamlined foreclosure prevention process. The alliance also helped the industry to agree to an effective way to deal with second mortgages, often a barrier to foreclosure prevention processes.

In November, the HOPE NOW cooperation extended to Fannie Mae, Freddie Mac, and the Federal Housing Finance Agency (FHFA) to develop the Streamlined Modification Program (SMP).

"The mortgage lending industry has shown enormous flexibility and commitment in the face of this past year's constantly changing economic outlook," said John Courson, chief operating officer of the Mortgage Bankers Association. "The plans HOPE NOW has for 2009 demonstrate clearly that the whole mortgage lending industry will continue to serve the needs of homeowners no matter what the situation," he added.

HOPE NOW is presenting even lofter goals for 2009 setting its sights to double loan modification to 2 million or more, hosted over 30 homeowner workshops, and continuing to streamline and report on mortgage loan workout programs and trends.