Countrywide and other large lenders are under scrutiny by the government to fix bad lending practices and help families stay in their homes. Countrywide will contact 2.2 billion dollars in bad (late loans) and try to work with these customers. Their loans were adjustable and they are having trouble paying their monthly bills.

In addition, they will work closely with another 10 billion set to readjust by the end of 2008 and try to help people refinance into loans they can afford to avoid another wave of bankruptcies. This is just part of the way in which banks are helping to stave off a recession. Bank of America has also pledged to help by creating a fund to purchase under valued mortgage securities and help with other sub prime fallouts. No one believes it will cause a recession in America but it is slowing things down and will take several years to recover from this fall out.