October 24, 2007

Statement of Chairman Dodd on Countrywide-NACA Partnership

"Countrywide has taken a step in the right direction in authorizing the Neighborhood Assistance Corporation of America (NACA) to help its borrowers. Under Bruce Mark's leadership, NACA has a strong record of helping homeowners navigate the daunting process of modifying their loans in order to make them more affordable and to avoid foreclosure. But Countrywide must ensure that each and every one of its subprime borrowers has access to equally effective help. To that end, Countrywide should make sure that all homeowners that may struggle to pay their mortgages are given the opportunity, on the same terms, to get their loans modified to ensure long-term affordability. "Furthermore, Countrywide is just one piece of a very large and complex puzzle. There are many other lenders that have issued loans with unreasonable terms, and they bear the same responsibility to help their borrowers. We need a transparent set of rules and standards which all lenders will use to modify loans on the scale that will be necessary to help borrowers avoid the wave of foreclosures looming on the horizon."