Daily Real Estate News  |  October 9, 2008

Rep. Frank to Banks: Modify Mortgages

U.S. Rep. Barney Frank, D-Mass, sent a letter to the country’s largest banks urging them to take a lesson from Bank of America and work with troubled homeowners to restructure loans.

Bank of America, which purchased Countrywide Financial Corp., announced plans this week to spend nearly $9 billion to give troubled borrowers “substantial interest rate reductions, reductions in principal, and waivers of late fees or repayment penalties.’

Frank urged Citigroup, JPMorgan Chase & Co., and Wells Fargo & Co. to follow suit.

“It is essential that every mortgage servicer firmly commit to implement plans for immediate mass modifications based on, or stronger than, the measures Bank of America/Countrywide has undertaken,” Frank said.

Source: Dow Jones News Service, Corey Boles (10/08/2008)