Compacts to Help Ohioans Preserve Homeownership
Governor Ted Strickland announced on April 7, 2008, that nine mortgage loan servicers
agreed to sign a “Compact to Help Ohioans Preserve Homeownership,” the first agreement
of its kind in the nation.
In a Governor's Office ceremony, executives from six mortgage loan servicers signed
a document pledging that they will work with the state in making every possible
attempt to prevent default loans and foreclosures in Ohio. Executives from three
other companies mailed signed copies.
"Home ownership is the very foundation of the American dream," Governor Strickland
said. "I am very encouraged that these loan servicers have stepped forward and pledged
to follow the common sense principles we outlined in our compact. These steps will
reduce foreclosures in Ohio and bring stability to the families and communities
affected by this crisis."
"At the same time I would urge all Ohioans facing possible foreclosure to contact
your loan servicer immediately to discuss your financial situation or call the State
of Ohio's Save the Dream Hotline. It's
a call that can help save your home," the governor said.
The six principles agreed to by the loan servicers include a willingness to:
- Engage in a substantial and large-scale loan modification effort for adjustable
rate mortgage resets and subprime mortgages.
- Identify, evaluate and make good faith attempts to contact at-risk or defaulting
borrowers as soon as possible.
- Modify loans to the extent permissible within existing fiduciary, contractual or
other legal obligations and in accordance with prudent mortgage lending and servicing
- Create incentives for staff and foreclosure counsel to modify loans rather than
- Report progress to the Ohio Department of Commerce.
- Enter into a non-binding agreement with the State for some defined period of time.
(The agreements extend to June 30, 2009.)