ResCap Announces Support for Streamlined Mortgage Modification Plan
FORT WASHINGTON, Pa. - The following statement is issued by Residential Capital, LLC Chairman and Chief Executive Officer Thomas Marano in response to the Streamlined Mortgage Modification Plan announced today.
"Residential Capital, LLC (ResCap) strongly supports the actions taken today by the Federal Housing Finance Agency, the Government Sponsored Enterprises (GSE) and HOPE NOW to assist at-risk homeowners quickly achieve affordable and sustainable mortgages through the implementation of the Streamlined Modification Plan. This program will give us much needed flexibility to assist homeowners in maintaining their homes during this time of economic disruption.
"We encourage other mortgage investors to follow the example of the HOPE NOW, the GSEs and industry-leading servicers such as ResCap to adopt more flexible loan modification guidelines. Such efforts will help to preserve homeownership for willing and qualified home owners, and will stem the toxic effects that rising foreclosures have on our communities.
"ResCap has a long history of promoting home preservation. We are a founding member and an active participant in the HOPE NOW Alliance, and through our Hope Keychain Alliance program were the first servicer to put loan counselors in the communities most in need of assistance. We have held 4,300 face to face counseling sessions with troubled borrowers this year.
"ResCap is the fifth largest mortgage loan servicer, handling more than three million loans. On a year to date basis, we have helped 251,000 customers avoid foreclosure and remain in their homes, consistent with applicable investor guidelines. Through a combination of outbound calls, letters and in home visits, we have achieved a 14% customer contact rate in an effort to work with our customers and preserve home ownership.
“The robust loss mitigation procedures that we apply to our non-securitized loans exceed the guidelines set in the SMP, and include loan modifications, forbearance plans, repayment plans, short sales and deed in lieu of foreclosure activities.”
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