Organizers of a foreclosure-prevention workshop in Brockton last Saturday were shocked to learn that a loan servicer invited to a similar workshop in Springfield on June 7 sent sales staff instead.
Steve Borgerson, a member of the Brockton Housing Partnership, which helped coordinate the event, said local organizers “were aware of the presence of Countrywide loan officers [in Springfield] and are working with them Â… to ensure the appropriate employees [were] present at their event.”
The Springfield workshop was the first of several to be held this summer, co-sponsored by hosting cities and the state’s Executive Office of Housing and Economic Development. The workshops are designed to allow mortgage borrowers facing default to have in-person conversations with their lender or servicer, in the hope they can work out a loan modification or other solution.
Springfield’s Acting Housing Director Carl Dietz said 107 homeowners attended the workshop, along with representatives from major lenders and servicers Countrywide, Citi, JP Morgan Chase, GMAC Mortgage, Option One, Washington Mutual and Wells Fargo.
Bank of America, which purchased Countrywide in January, also attended.
Countrywide sent two loan originators and one loan workout staff member, Dietz said. “It was apparent that several of the lenders needed to provide additional staff at future events, and it was my understanding that that discussion was going to take place,” he said.
In addition to last Saturday’s workshop, two additional foreclosure-prevention workshops are scheduled, in Worcester and Lawrence next month.
Dietz said he believes homeowners “were pretty satisfied with the opportunity to sit down face-to-face” with the lenders and servicers present in Springfield.
“I know it’s quite an expense for [lenders] to send folks to an event, and some of [the problem] is staff shortage,” he said.
“My guess is there was good faith” on all lenders’ part to send staff members who could help borrowers, he added.
But Borgerson said it was disappointing that Countrywide would send sales staff to an event at which he said about one-quarter of the attendees had Countrywide loans.
A spokeswoman for the city of Boston, which held its foreclosure-prevention workshop with major lenders and servicers in March, said Countrywide sent only workout staff to that event.
Executive Office of Housing and Economic Development spokeswoman Kim Haberlin said organizers of the state-sponsored workshops have requested that all lenders who attend be prepared to work on loan modifications.
She said lenders were, in fact, able to do that with borrowers attending the Springfield workshop.
Countrywide called borrowers who were in Springfield to follow up with them afterwards, Haberlin said. The Western Massachusetts Foreclosure Prevention Center will be tracking the outcomes of borrowers who attended that workshop, according to its executive director, Marie Burkart.
“Countrywide had quite a few customers, and they stayed through the end,” Burkart said. The staff who were present took all customers’ information and will send it back to the lender/servicer’s loss mitigation department, she said.
“Maybe there was a slight slowing down in the process, but it will accomplish the same thing,” she said.
Borrowers who attended the event looked much happier when they left than when they arrived, she added.
“The difference in peoples’ demeanor was amazing.
