State rides to the rescue

Mortgage servicers pledge more help By Laura Smitherman and Gadi Dechter Amid the widening housing crisis, Gov. Martin O'Malley plans to announce today an agreement with some of the nation's largest loan servicers to help homeowners who have fallen behind in their mortgage payments to avoid foreclosure. Under the accord, GMAC, Ocwen Financial Corp., Litton Loan Servicing and other companies have agreed to follow certain practices when working with borrowers seeking to modify terms of mostly subprime or adjustable-rate loans they can no longer afford. Significantly, the servicers have agreed to a "cooling-off" period to ensure that borrowers don't lose their homes before they can get help. Industry officials and homeowner advocates say Maryland's efforts put it at the forefront of the national response to the housing crisis,... [read full story]