NEW ORLEANS--(BUSINESS WIRE)--Aug. 16, 2006--Tears, hugs and shouts of joy aren't the first things that come to mind when mortgage bankers get together, but a recent Option One-led borrower outreach event in New Orleans brought expressions of relief from a lot of people still suffering the effects of Hurricane Katrina nearly one year later.

In just one of many moving stories, a school teacher displaced to another state pulled her Option One loan rep into a powerful embrace. "I can't believe I'm hugging a mortgage banker," she exclaimed. She'd been struggling to keep her home in New Orleans while teaching school out of state at a much lower salary. In one of many face-to-face meetings with borrowers, Option One was able to create a permanent workout for her.

Coordinated by Option One, the evening event included other mortgage lenders as well as community housing advocates. "As a mortgage lender and servicer, we've learned that partnering with local community homeownership organizations helps facilitate discussions with borrowers about past-due mortgages," said Anne Tyree, vice president, government, housing and industry relations.

Joining Option One at the event were Chase Mortgage, Countrywide Home Loans and Homecomings Financial as well as the Association of Community Organizations for Reform Now (ACORN), Greater New Orleans Fair Housing Action Center, National Community Reinvestment Coalition (NCRC) and Neighborhood Housing Services (NHS) of New Orleans.

Help Still Needed

New Orleans area residents attended sessions on homeowner retention and solutions for delinquent mortgages as well as a fraud seminar led by Mark Kasak, assistant vice president of enterprise fraud prevention and investigation at Option One. Kasak has years of experience in law enforcement and financial fraud mitigation. He described potential scams in detail, from identity theft to contractor fraud, and provided resources for homeowners to contact in case of any suspicious activity.

In addition, homeowners had the opportunity for individual meetings with housing advocates and/or lenders to facilitate mortgage solutions. "It's important to realize that the people of New Orleans still need our help," said Phillip Gioeli, project team lead for Option One's borrower assistance team's strategic initiatives. "Resolving a past-due mortgage eliminates fear. It helps alleviate some of their stress and anxiety."

Option One also brought along insurance experts to advise borrowers. Although many people are eligible for relief from FEMA, state grants and homeowners insurance, coordinating these benefits is complicated.

"This was as much a learning experience for us as it was for the borrowers," said Tyree. "No one in this country has ever dealt with such a loss of infrastructure before. Being there on the ground gave us a much better understanding of our borrowers' needs at this time, and how we can help support the restoration of the greater New Orleans community."

Founded in 1992, Irvine, Calif.-based Option One Mortgage Corp. originates and acquires nonprime residential mortgage products through a national network of brokers and lenders. Option One also services and sub-services nonprime mortgage loans, with more than $70 billion under management at July 31, 2006. It has received top ratings for five consecutive years from Standard & Poor's, Moody's and Fitch for loan servicing quality.

Additionally, the company markets a variety of direct-to-consumer mortgage products nationwide through its wholly owned subsidiary, H&R Block Mortgage Corp. Option One employs more than 4,300 associates. It is a subsidiary of H&R Block Inc. (www.hrblock.com), a diversified company with subsidiaries that deliver tax services and financial advice, investment and mortgage products and services, and business accounting and consulting services. For more information about Option One, visit the company's Web site at www.optiononemortgage.com.

Copyright Business Wire 2006

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