Mortgage Default Information

The HOPE NOW Alliance Strategy

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In Brief...

The HOPE NOW Alliance is a partnership between mortgage market organizations (lenders, mortgage servicers, investors) and counseling agencies, and was created in October, 2007, to " How It Works The Alliance's primary method of helping to stem the rising tide of foreclosure has been to directly contact homeowners who have fallen behind on their mortgage payments with an offer of free foreclosure prevention assistance. In June, 2008, the Alliance announced that it had created new guidelines for mortgage servicers when working with homeowners to prevent foreclosure - an industry first. Critics point to the fact that the Alliance is too strongly tied to the lending and financial services industry, a point that seems to be proven in some of the comments made by George Miller, Executive Director of American Securitization Forum. While he was quoted in the press release announcing the formation of the Alliance that the group would implement procedures "to keep borrowers in their homes," in a later April 2, 2008 New York Times article, Miller admitted that his firm "represent(s) the interests of investors and we want to minimize losses on bad mortgages and maximize recovery.

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