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New Foreclosure Prevention Effort To Be Announced

One day before House Financial Services Chairman Barney Frank (D-Mass) holds a hearing to see whether mortgage lenders and servicers are playing nice, the industry will announce later today a new plan to accelerate the modification of distressed mortgages and keep more people out of foreclosure, according to an industry official.

The new plan is an extension of the private-sector Hope Now, an alliance formed last year of private-sector loan services, counselors and investors that aimed to help struggling homeowners on a voluntary basis. The industry players have been working on this new plan with administration officials for at least several weeks.

Details will be released at a news conference scheduled for 2 p.m. at the at the Federal Housing Finance Agency, according to news reports.

Frank is holding a hearing at 10 a.m. tomorrow entitled "Private Sector Cooperation with Mortgage Modifications-Ensuring That Investors, Servicers and Lenders Provide Real Help for Troubled Homeowners.” He has long threatened stronger medicine for the industry if they prove unwilling to take advantage of current efforts to keep people in their homes.

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