In an effort to stem the tide of depressed housing prices resulting in part from additional cheaper foreclosure properties entering the market ... the federal government announced last week that it was urging lenders to restructure nonperforming loans rather than foreclose on them. It was reported that 10 major lenders had agreed. In line with that proposal a consortium of lenders has proposed creating a fund of approximately one hundred billion dollars to buy distressed assets to relieve the credit crisis, avoid recession  and shore up consumer confidence and spending.

Countrywide has announced that it will restructure approximately sixteen billion dollars in nonperforming loans between now and the end of 2008. Approximately ten billion dollars will be restructured through refinances. Approximately four billion dollars will take the form of modifications of existing loans. The remaining two billion will be accomplished through either refinances or modifications depending upon the circumstances of the distressed mortgagors. Countrywide estimates that this will benefit approximately 82, 000 homeowners in danger of losing their property to foreclosure.