While U.S.Treasurer Anna Escobedo Cabral asserted Friday that the Treasury and the Department of Housing and Urban Development (HUD) are doing all they can to aggressively prevent foreclosures and reach out to borrowers, reports surfaced Friday suggesting that the White House and government officials are currently working with lenders to implement a freeze on certain loan interest rates.

Quoting White House officials, Reuters reported Friday that the Bush Administration said it’s too early to discuss what measures will be implemented to prevent two million subprime loans from defaulting within the next two years.
Despite the White House remaining mum on the topic of rate freezes Friday, Cabral told an Atlanta audience that the Treasury, government officials and lenders continue to work on initiatives that will help lenders contact distressed borrowers before their adjustable rate loans reset.
Cabral brought up the much discussed HOPE NOW alliance, which is a partnership made up of government agencies, financial institutions, housing experts and financial counselors. The goal of HOPE NOW is to educate and promote loss mitigation efforts across the country, so borrowers are informed through strategic media campaigns and broad educational initiatives.
“One of the main goals of this effort is to implement a unified, aggressive outreach strategy,” said Cabral. “More than half of borrowers whose mortgages go into foreclosure never reach out to their lender or a homeownership counselor for help. Many bury their heads and believe that foreclosure is inevitable.”
Click here to read Cabral’s full speech.