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FOR IMMEDIATE
RELEASE
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Contact:
Kevin Mukri
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December 6, 2007
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(202)
874-5770
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Comptroller Dugan Commends Plan to
Assist Subprime Borrowers
WASHINGTON — Comptroller of the Currency John C. Dugan issued the following
statement today at the Department of the Treasury press conference announcing a
plan to assist a key segment of subprime borrowers to modify their mortgages
and avoid foreclosures:
The plan announced this afternoon provides a programmatic approach to
facilitate modifications of large numbers of mortgages for a key segment of
subprime borrowers – without taxpayer assistance. It will allow more
borrowers to remain in their homes, and more mortgage holders to avoid the very
substantial costs of foreclosure. The OCC strongly supports the new
programmatic approach, which, in addition to benefiting borrowers and
investors, also constitutes a safe and sound practice for national banks that
act as mortgage servicers.
I commend the efforts of Secretary Paulson, Secretary Jackson, and
representatives of the mortgage lender, servicer, and investor community that
comprise the HOPE NOW Alliance. Their hard work has brought about agreement at
a critical time for many homeowners, lenders, and mortgage servicers.
Of course, the new programmatic approach will not apply to the segment of
subprime borrowers who can refinance at market rates or into FHA loans. And it
will not apply to the segments of borrowers who have fallen behind on their
existing payments or have started the foreclosure process, but – and this is
important – these borrowers will still be eligible for loan modifications on a
case-by-case basis depending on their circumstances.
I believe the new programmatic approach is a model “best practice” for the
industry to address a number of competing interests fairly and sensibly. Most
important, it constitutes another creative way to allow current borrowers to
stay in their homes.
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# # #
The Office of the Comptroller of
the Currency was created by Congress to charter national banks, to oversee a
nationwide system of banking institutions, and to assure that national banks
are safe and sound, competitive and profitable, and capable of serving the
banking needs of their customers in the best possible manner.
OCC press releases and other information are available at
http://www.occ.gov. To
receive OCC press releases and issuances by email, subscribe at
http://www.occ.gov/listserv.htm.
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