Calabasas, California-based lender Countrywide Financial Corp. has partnered with the Association of Community Organizations for Reform Now (ACORN) in an effort to create home retention programs for struggling borrowers.
ACORN—a nonprofit dedicated to the housing needs of urban areas—says the two organizations will focus primarily on borrowers with subprime loans.

“Countrywide and ACORN share the belief that subprime borrowers who have demonstrated the ability and willingness to make payments should not face foreclosure solely as the result of a rate reset,” said Maude Hurd, the national president of ACORN. “Countrywide and ACORN anticipate final release of the groundbreaking provisions of the home retention initiative soon after the New Year. Both parties believe that the plan will provide a road map and positive benefits to subprime borrowers experiencing financial difficulties in this challenging environment.”
In a press statement, Countrywide said it’s already implementing loss mitigation solutions for borrowers. Last month alone, the lender completed 12,565 mortgage loan modifications—a significant increase compared to the 799 loan modifications conducted during the same period last year.
“During the first eleven months of 2007, Countrywide helped more than 69,000 customers retain their homes through solutions such as loan modifications, long-term repayment plans, special forbearance and other options,” said Steve Bailey, senior managing director of loan administration at Countrywide.