California Gov. Arnold Schwarzenegger has enlisted four major subprime servicers to streamline their loan modification procedures for adjustable-rate mortgages with the aim of mitigating a "foreclosure crisis" in his state.Countrywide Financial Corp., GMAC Residential Holding Corp., Litton Loan Servicing LP and Barclays' HomeEq unit have agreed to keep subprime borrowers at their initial interest rates if they can't afford their resets. The governor said his state is facing a foreclosure crisis and half a million California borrowers have subprime mortgages that will reset to a higher rate in the next two years. "With this kind of cooperation from loan servicers, we can save tens of thousands of people from being added to the foreclosure lists," Gov. Schwarzenegger said.
