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Countrywide Financial Corporation (NYSE: CFC), the leading stand-alone mortgage lender, said yesterday it will modify terms on some 25,000 home loans this year to help homeowners avoid foreclosures.To date, the lender has already modified more than 17,000 home loans in 2007 and provided assistance to an additional 35,000 mortgages, via adjusting prepayment plans, postponements of payments and refinancings.
Countrywide said by limiting foreclosures it actually may be able to better control expenses since restructuring mortgages can be costly. It also will be pleasing to politicians as a report released by the Joint Economic Committee, chaired by Democratic Sen. Chuck Schumer of New York pointed out foreclosure can result in up to $80,000 of losses for the homeowner, lender, local government, and neighbors whose homes fall in value. Preventing a foreclosure costs $3,300, the report said.
Once again, Angelo Mozilo, Countrywide's CEO, appears to have found the balance of good business, good politics and good customer service.
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