A group of mortgage servicers joined Gov. Ted Strickland, Commerce Director Kimberly Zurz and Treasurer Richard Cordray on Monday to sign non-binding compacts aimed at helping keep Ohioans in their homes at a time when foreclosure filings are at record highs.

"Today we have a commitment from those who hold the paper on these homes," Strickland said at a press conference called to announce the deal. Six mortgage servicers sent representatives to sign the compacts, and Bill Cosgrove, president of the Ohio Mortgage Bankers Association, was present to represent an additional three companies who had agreed to deals.

Zurz estimated those nine lenders represent more than half of Ohio's mortgage market, and she said the state is still negotiating with other companies in the hopes of affecting more homeowners.

The compacts, which extend into next summer, operate on six principles that address the companies' willingness to renegotiate loan terms and commit staff and resources to loan counseling.

Each compact is different, but Zurz pointed out tenets common to most or all of them, including a willingness to lock in the introductory rate on adjustable-rate mortgages for five years, agreements to streamline the process for modifying loans and agreements to notify borrowers months ahead of time about when their interest rates will be changed. - (Read more)