NACA Targets Countrywide

Countrywide Financial Corp. is forcing tens of thousands of homeowners into foreclosure by refusing to restructure subprime adjustable rate mortgages with 10% and 11% interest rates, according to a community activist group that provides low-cost mortgage financing to prevent foreclosures.The Neighborhood Assistance Corporation of America chief executive Bruce Marks called on CWF to start working with its borrowers and restructure their unaffordable loans. NACA assembled a group of Countrywide borrowers to tell their stories at a Washington press conference and they repeatedly complained about being socked with $5,000 and $10,000 fees and receiving no help from servicing employees. NACA receives financial backing from Bank of America and Citigroup and Mr. Marks said maybe BoA's $2 billion investment in Countrywide will force the nation's largest mortgage lender and servicer to change its policies. "Isn't it ironic," he said, that Countrywide forced people into subprime loans with high rates and now Countrywide has to pay subprime rates to fund its operations and "can't survive."