Austin Business Journal
With higher monthly payments in store for subprime mortgage owners, Texas Attorney General Greg Abbott has asked three mortgage companies to take steps to prevent Texans from losing their homes to foreclosure.
In a meeting with Houston-based Litton Loan; Calabasas, Calif.-based Countrywide Mortgage; and Dallas-based EMC Mortgage, Abbott proposed five measures designed to preserve homeownership in Texas, improve consumer communication and resolve complaints.
They included that the lenders should:
- Provide long-term solutions for borrowers with adjustable-rate mortgage loans.
- Mitigate first, collect second.
- Create an in-house resolution committee to address consumer complaints.
- Improve communication with consumers.
- Waive applicable penalties and fees.
“Mortgage lenders, loan servicers and public officials must work cooperatively on behalf of Texas homeowners who are affected by the looming housing crisis,” Abbott says. “Because of the housing industry’s tremendous economic impact, resolving this issue is important to the Texas economy’s continued growth and expansion.”