Released: April 14, 2007

Mortgage Mod Squad saves homes

Source: Kenneth R. Harney, Washington Post (Free Registration)

With large numbers of homeowners falling behind on mortgage payments, lenders across the country are seeking ways to keep delinquent customers out of foreclosure.

One of the newest approaches: the Mod Squad, a roving 50-person team of problem-solvers who work for Texas-based EMC Mortgage, a subsidiary of Wall Street investment bank Bear Stearns. EMC services about 500,000 loans nationwide, with $78 billion in outstanding balances.

Named after a hit TV series from the late 1960s and early ‘70s, the Mod Squad consists of experts in loan modifications—custom-crafted workout solutions for borrowers who no longer can afford their mortgages at current rates and terms. The object is to search for changes in the loan requirements that will permit the borrowers to remain in their houses, pay down their loans and avoid foreclosure.

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