Earlier Subprime Rescue Falters

Wall Street Journal (02/13/08) P. A3; Simon, Ruth; McGinty, Tom
Mortgage lenders have yet to release data on how many borrowers have received assistance as part of a Bush administration plan to freeze interest rates for subprime borrowers who are still making timely monthly mortgage payments. However, information from the consumer HOPE hotline that accompanied the rate-freeze plan indicates that many borrowers are not receiving assistance. The Homeownership Preservation Program reports that it has fielded 176,000 calls since the rate-freeze plan was rolled out in December, but counselors suggested workouts for just 9,975 borrowers. The report also shows that 12,113 callers were referred for in-person counseling, while 4,410 were told their best option is to sell. While hotline counselors generate proposals for individual borrowers, their main goal is to get borrowers to communicate with their mortgage lenders before it is too late.