Wheatworks Blog: Financial Matters

According to an article USA TODAY, Countrywide Financial plans to rework $16 billion in home loans by modifying or refinancing the loans of 82,000 borrowers who are facing foreclosure.

While it is in Countrywide’s self-interest to do so, this move may benefit Countrywide borrowers who are in default because of interest rate resets which have occurred in recent months, borrowers who cannot refinance but face a rate increase in coming months, and borrowers with subprime credit who have made payments faithfully.

You may also wish to read Countrywide’s Lending Practice on Subprime Loans (PDF File). It is a response to a New York Times article which ran on August 26, 2007 challenging Countrywide Financial Corporation’s subprime lending operations. Countrywide reports finding “solutions to keep more than 35,000 borrowers out of foreclosure during this year alone” and has 2,500 employees in its Home Retention Division.