Yes, it extends beyond subprime borrowers. But, it doesn’t apply to people already in default, and the people who are eligible have just 30 days to negotiate new terms. The six banks — Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co. — are members of Hope Now, which claims it has already helped many subprime borrowers.
Yes, but helped how much?
Consumer groups, however, point out that many borrowers still can't keep up, even after loan workouts. They say many of the borrowers in the Hope Now effort have negotiated short-term loan modifications or repayment plans, which often involve a borrower getting back on track after missing a few payments. A full-fledged refinancing at a lower rate is preferable, they say.
I don’t want to totally minimize the help, but, remember, somebody like BofA ain’t in this for its health or its charitable reputation.
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