Banks Support New Homeowner Rescue Program

Washington, D.C.–Six mortgage lenders will announce a plan Tuesday to save more homeowners facing foreclosure, The Wall Street Journal reports.The new Project Lifeline plan will provide help for homeowners 90 or more days past due on their mortgages. Some will be allowed to put a 30-day hold on their foreclosure

Washington, D.C.–Six mortgage lenders will announce a plan Tuesday to save more homeowners facing foreclosure, The Wall Street Journal reports.The new Project Lifeline plan will provide help for homeowners 90 or more days past due on their mortgages. Some will be allowed to put a 30-day hold on their foreclosure while lenders try to restructure the loans to be more affordable.If a homeowner is already in bankruptcy, paying off an investment or vacation property loan or if a foreclosure date has been set within the next 30 days for a property, the homeowner will not qualify for the new plan.The Project Lifeline program will involve prime loans and subprime loans, which were the focus of the interest rate freeze program announced in December.Working with the U.S. Treasury and Department of Housing and Urban Development, Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., J.P. Morgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co. will participate in the program.The banks are part of the Hope Now Alliance and service roughly half of the U.S. mortgage market. Lenders may start contacting borrowers who qualify by mail this week.