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Hope Now Alliance

The Hope Now Alliance is a cooperative effort between the US government, counselors, investors, and lenders to help homeowners who may not be able to pay their mortgages. Created in 2007[1] in response to the subprime mortgage crisis, the alliance claims to have helped over 1 million homeowners avoid foreclosure through January 2008. Critics of the alliance contend that the assistance provided does not go far enough,[2] and that not enough homeowners are being helped.[3]


  • Creation 1
  • Strategy 2
  • Relief options 3
  • Results 4
  • Membership 5
  • See also 6
  • References 7


On August 31, 2007 Housing and Urban Development Secretary Alphonso Jackson and Treasury Secretary Henry Paulson to work with mortgage lenders, foreclosure counsellors, the Federal Housing Administration, Fannie Mae and Freddie Mac to launch a new "foreclosure avoidance initiative".[4] These discussions led to the creation of the Hope Now alliance, which was announced by Secretary Paulson on October 10, 2007.[5]

At its inception the Alliance was composed of lenders representing 60% of all outstanding mortgages in the United States, counseling services, trade organizations and a group representing investors in

  1. ^ "HOPE NOW Alliance Created to Help Distressed Homeowners". Hope Now Alliance. 2007-10-10. Retrieved 2008-07-06. 
  2. ^ Christie, Les (2008-04-10). "Hope Now's numbers don't add up to much help".  
  3. ^ a b Christie, Les (2008-04-28). "Housing relief efforts slow as pace of foreclosures rise". Retrieved 2008-07-06. 
  4. ^ "President Bush Discusses Homeownership Financing".  
  5. ^ a b "Statement by Secretary Henry M. Paulson, Jr. on Announcement of New Private Sector Alliance – HOPE NOW".  
  6. ^ "HOPE NOW Announces New Membership". Hope Now Alliance. 2007-10-18. Retrieved 2008-07-06. 
  7. ^ "HOPE NOW Lists All Alliance Members' Service Numbers". Hope Now Alliance. 2008-01-29. Retrieved 2008-07-06. 
  8. ^ "Hope Now - Hotline Services". Hope Now Alliance. Archived from the original on 2008-07-05. Retrieved 2008-07-06. 
  9. ^ "Hope Now - Mortgage Lender Directory". Hope Now Alliance. Archived from the original on 2008-07-04. Retrieved 2008-07-06. 
  10. ^ "HOPE NOW: Fourth Round of Letters to At-Risk Homeowners Being Sent". Hope Now Alliance. 2008-02-20. Retrieved 2008-07-06. 
  11. ^ "888-995-HOPE Hotline Averaging More Than 3,000 Calls a Day". Hope Now Alliance. 2008-01-16. Retrieved 2008-07-06. 
  12. ^ "Industry group touts loan workouts".  
  13. ^ "Growth in foreclosure sales outpaces workouts".  
  14. ^ Zibel, Alan (2008-06-13). "US foreclosure filings surge 48 percent in May". The Associated Press. Retrieved 2008-07-06. 
  15. ^ a b Zibel, Alan (2008-06-22). "Workout programs come under fire". The Associated Press. Retrieved 2008-07-06. 


See also

A current list of Hope Now members is available here


There are claims that the group has not been effective at addressing the increasing problem of foreclosures in the United States, with recent figures indicating that the rate of foreclosures rising faster than the increase in homeowners helped.[3][13][14] It has also been noted that the majority of assistance provided by the group has been to establish repayment plans, rather than actually modifying the terms of the mortgage.[15] Concerns about the limitations of data collected by groups such as Hope Now led the Office of the Comptroller of the Currency to undertake its own investigation into foreclosures.[15]

Since first being mentioned in December 2007, the Homeowner's HOPE Hotline received more than 140,000 calls in 2007 (including over 45,000 in the first three days), and an average of 3,200 calls per day in January 2008[11][12]


Hope Now describes the assistance that it provides to homeowners as loan workouts, a form of loss mitigation. These workouts can either result in establishing a modified repayment plan with the homeowner to bring them up to date, or a loan modification where the terms of the mortgage are modified in order to make the loan serviceable for the homeowner.

Relief options

Beginning in October 2007 mortgage lenders & servicing companies within the group reached out to homeowners with past due accounts via mail, giving information to them of the group and the assistance available. Over 200,000 letters were sent in the first batch, with additional mailings occurring in November, January & February 2008. In total one million letters have been sent.[10]

[9] The group promotes a national 24 hour



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