Ohio Treasurer Richard Cordray today joined Governor Ted Strickland and Department of Commerce Director Kimberly Zurz in announcing that nine mortgage loan servicers agreed to sign a “Compact to Help Ohioans Preserve Homeownership,” the first agreement of its kind in the nation.

The loan servicers signing a compact are:

• Carrington Mortgage Services
• Citi
• GMAC RESCAP/Homecomings Financial
• HSBC Finance Corp.
• Ocwen Financial Corp.
• Option One Mortgage
• Saxon Mortgage Services
• Select Portfolio Servicing
• Litton Loan Servicing

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 practices.
• Create incentives for staff and foreclosure counsel to modify loans rather than foreclose.
• 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).

You can view and download the signed compacts here

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