Governor Martin O'Malley today announced that after intensive negotiations, Maryland has reached agreements with six mortgage servicing companies to create a streamlined and transparent loss mitigation process for distressed Maryland homeowners. Together, these companies service 23% of home loans in Maryland. The Governor was joined today in Annapolis by Department of Labor, Licensing and Regulation Secretary Thomas E. Perez, Department of Housing and Community Development Secretary Raymond Skinner, Financial Regulation Commissioner Sarah Bloom Raskin and representatives from the participating servicers.

"During this time of economic uncertainty, we must do all that we can to protect our middle class families and keep our families in their homes," said Governor O'Malley. "I want to thank these six lending companies for taking the lead in their industry, and becoming part of the solution for distressed homeowners in Maryland."

The agreements follow a five-point framework that will provide Maryland homeowners direct access to servicers through Maryland's Foreclosure Prevention Assistance Network. By signing the agreements, the servicers, HSBC, Ocwen, GMAC ResCap, Litton Loan Servicing, AmeriNational Community Services and Citi, have pledged to abide by a predetermined timeline for loss mitigation that will ensure homeowners have an answer within 75 days from the time they submit a loss mitigation package. The agreements also ensure that generally during that time, the lender will halt foreclosure actions and penalties will not accrue. The servicers agreed to designate representatives, known as "Team Maryland," who will serve as the direct points of contact for Maryland assistance network working with distressed homeowners. The servicers have also agreed to establish or continue internal policies that offer staff incentives for loan modifications, and to refrain from offering incentives that encourage foreclosures.

"Maryland has been at the forefront of creating policies and reforms to combat the foreclosure crisis that has swept the nation. These agreements are a critical component of our comprehensive efforts to provide homeowners with the resources and assistance they need to remain in their homes," Secretary Perez said.

As delinquency and foreclosure rates have climbed across the nation, homeowners seeking alternatives have had increasing difficulty even getting their loan servicer on the phone, let alone accessing meaningful loss mitigation. Recognizing this troubling trend, Governor O'Malley called servicers to the table in February to find a way to ensure more Marylanders have access. The agreements announced today are a result of months of negotiations.