Countrywide Proposes To Refinance Or Restructure Up To $16 Billion In Loans

Reuters reports:

• Countrywide Financial Corp , the largest U.S. mortgage lender, on Tuesday offered to refinance or restructure up to $16 billion of adjustable-rate mortgages through the end of 2008. The lender said its program may help about 82,000 borrowers who face higher payments stay in their homes. It announced the program as pressure mounts on the mortgage industry from politicians and consumer groups worried about rising foreclosures to clean up lending excesses, and make only home loans that consumers can afford in the first place.

For more, see Countrywide to modify $16 billion mortgages.

Recent political pressure in the form of proposed bankruptcy law changes that would force lenders to accept loan modifications in connection with homeowners filing Chapter 13 bankruptcy (see More On Proposed "Forced Mortgage Modifications" In Chapter 13 Bankruptcy) may be having an influence on Countrywide's position. The recent Countrywide protests by consumer activists may also be having an effect (go here for Countrywide under attack). The proposed Federal class action lawsuit against Countrywide alleging race discrimination might also be contributing (or could it be that Countrywide is just posturing to take the heat off?). countrywide pressure zebra