SAN FRANCISCO – Mayor Gavin Newsom last week called on the city’s major lenders to help forestall thousands of expected foreclosures in the coming months by reaching out to at-risk borrowers and modifying loan terms for those who have made timely mortgage payments.
Among the recipients of the unusual civic request were Patelco CU, Bank of America, Countrywide Financial, Washington Mutual, Citibank, HSBC and Wells Fargo.
The letter asks lenders to pledge to identify and contact borrowers at risk of default at least six months in advance of an approaching interest rate reset, and to voluntarily modify the terms of some loans to help forestall foreclosures.
“San Francisco residents should not have to suffer the same fate as countless other families who have lost their homes across the nation because of predatory lending practices,” said Newsom. “I ask the financial community to help protect the American dream and be good partners in keeping families in their homes and in San Francisco.”
