Mortgage Lenders Pledge Quick Response

Much maligned mortgage companies have promised to respond to beleaguered borrowers within 45 days, so as to help stem the increase in foreclosures.

The agreement is expected to be announced today by the Hope Now alliance, an industry group backed by the Bush administration, as part of a new set of guidelines for mortgage companies taking part in the initiative.

The agreement, though not legally binding aims to clearly outline the mortgage assistance process for borrowers and industry players.

Despite the deal's focus to alleviate the plight of disgruntled home owners, consumer groups say Hope Now's efforts will never match the growth in foreclosures around the country and are instead pushing for a new $300 billion program to allow the government to back new loans for struggling homeowners.

"There isn't a serious level of modification going on because the program is voluntary," said John Taylor, president of the National Community Reinvestment Coalition, a consumer group in Washington, who described the newest announcement as "baby steps."

Foreclosure filings last month were up nearly 50% compared with a year earlier.