search

The Real Deal Logo

Trending

Lawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421aMarty Burger’s new venture sputters on takeoffMarty Burger’s new venture sputters on takeoffHousing deal could rescue Halletts North, other stalled projectsHousing deal could rescue Halletts North, other stalled projectsHarry Macklowe faces major losses on Miami, Midtown projectsHarry Macklowe faces major losses on Miami, Midtown projects
New York

State officials urge more loan modifications

Sign Up for the undefined Newsletter

Attorney general and banking regulators from 11 states sent a letter yesterday to 16 of the largest mortgage servicers, urging them to follow Bank of America and begin broad-based loan modification programs of subprime loans, to help delinquent homeowners pay off their mortgage and avoid foreclosure. As part of a settlement with the state attorney general, Bank of America agreed Monday to modify the terms of as many as 390,000 subprime mortgages and option adjustable-rate mortgages that were serviced by Countrywide Financial, which it acquired July 1. The $8.6 billion deal aims to initially reduce borrowers’ mortgage-related payments to 34 percent of their monthly income by refinancing borrowers into government-backed loans and reducing borrowers’ interest rate or principal.