Adjustable Rate Mortgages originated during the housing boom are expected to reset for tens of thousands of families in California in the coming year. An overwhelming number of California homeowners will be looking to modify the terms of their loans as payments become unaffordable. Anticipating the growing need for effective housing counselors in the State, the California Reinvestment Coalition has raised $4 million dollars in funding from major financial institutions for a two year initiative aimed at increasing capacity of mortgage counselors to better assist troubled homeowners.

Thus far Merrill Lynch, HSBC, Wachovia, Countrywide, Comerica, Wells Fargo, Bank of America, and Citibank have contributed to this program and fundraising efforts are ongoing.

CRC expects to work with partners to issue an RFP making funds available for housing counseling agencies to help families suffering from the sub prime crisis.

The APIC blog will post updates on this RFP as the project evolves.