Gov. Martin O'Malley, D-Md., has entered into an agreement with HSCB, Ocwen, GMAC ResCap, Litton Loan Servicing, AmeriNational Community Services and Citi.
According to an AP report, the governor is hoping to sign additional firms soon and will inform the public of ‘irresponsible’ servicers that do not take appropriate steps to reduce foreclosures.
Under the agreement, the six servicers will set a 60-day cushion for homeowners in trouble, during which they will not take foreclosure actions. They will also combine representatives to work with distressed homeowners and provide incentives for arranging loan modifications.