San Francisco Mayor Gavin Newsom and Assessor-Recorder Phil Ting sent a letter to top financial insitutions this week asking them to save borrowers in San Francisco from foreclosure through various loss mitigation initiatives.

In the letter, Mayor Newsom and other city officials said companies, including Bank of America, Countrywide, Citigroup, Washington Mutual, HSBC, Patelco Credit Union, Wells Fargo, U.S. Bank, and the California Bankers Association, have until November 30, 2007, to respond to the mayor’s request.
Newsom’s office is requesting that lenders contact borrowers facing rate resets at least six months before their monthly payments increase. In addition, his office wants companies to modify the existing terms on their mortgage loans when a borrower has proven his or her ability to make monthly payments.
“San Francisco residents should not have to suffer the same fate as countless other families who have lost their homes across the nation because of predatory lending practices,” said Mayor Newsom. “I ask the financial community to help protect the American dream and be good partners in keeping families in their homes and in San Francisco.”
Gavin’s office also plugged the “Don’t Borrow Trouble” initiative, which features a toll-free hotline offering assistance to distressed borrowers, as well as legal advice to troubled homeowners.