Countrywide Starts Up Program To Modify $16B In Amendable - Rate Mortgages

[NMDemDist2]

Source: Headline News

Calabasas, CA (AHN) - The nation's biggest mortgage lender, Countrywide Financial Corporation, said on Tuesday it will start calling borrowers to tender refinancing or modifications on $16 billion in loans whose interest rate is about to adjust by the last part of 2008.

Countrywide has had troubles with loan financing and has been criticized since past July, with its Chief Executive selling hundreds of millions of dollars in stock and made it to face strain from the administration to help people keep their homes.

Countrywide President and Chief Operating Officer David Sambol stated: "Unprecedented times call for unprecedented remedies. We are determined to assist borrowers who have the willingness and wherewithal to remain in their homes, but need a little help to do it."

Countrywide affirmed it would refinance about $10 billion in loans and modify additional $4 billion.

It also intends to reach borrowers of $2.2 billion who are having hard times paying because of a latest rearranged rate.

Comprehensively, Countrywide's plan would communicate to about 82,000 borrowers for some kind of assistance.

Read more: http://www.allheadlinenews.com/articles/7008921065

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Trying to save their company, hope it helps some homeowners.

[EVDebs]

1. Gresham's Law ?

Gresham's law, good money follows bad

http://en.wikipedia.org/wiki/Gresham's_Law

in a way, the bad money that started this mortgage stuff off is now being followed by good money

[Spangle]

2. Finally got smart

This really is the only option. They are going to have to fix those moragages or loose all. I really didn't think these folks would take this option, but wait for a bailout, that will not come. Cause there isn't any money to bail them out. It's all going to the war.