Countrywide Financial Corporation, the largest mortgage lender in the U.S. took the lead today in announcing that it will seek to refinance and/or modify about $16 billion in loans that are about to reset to a higher interest rate.
Though this is unprecedented for Countrywide, or any other mortgage lender, the company has been active in refinancing its loans. So far, Countrywide has modified 20,000 loans, or 5% of its mortgage portfolio.
“Unprecedented times call for unprecedented remedies,” Countrywide President and Chief Operating Officer David Sambol said in a statement. “We are determined to assist borrowers who have the willingness and wherewithal to remain in their homes, but need a little help to do it.” If other banks see this as good business, expect more to follow.