Letter Sent to Troubled Borrowers: Help Is On the Way
The Hope Now alliance, a partnership between mortgage companies and nonprofit housing counselors, began a nationwide mail campaign last week to offer help to home owners who are having trouble meeting their mortgage payments.
The effort is being backed by the Bush administration. Treasury Undersecretary Robert Steel says the initial mailing would be followed by more outreach efforts in the months ahead.
Critics are calling this effort “too little too late” and are urging the administration to endorse a proposal made by Sheila Bair, chair of the Federal Deposit Insurance Corp. Bair has said that mortgage companies should consider making broad-based conversions of adjustable-rate mortgages to fixed-rate loans if the borrowers are current on their payments.
Source: Dow Jones International News (11/19/07)