In an effort to further stem rising foreclosure rates, six national mortgage lenders will join a new initiative that is expected to be announced today by the Treasury Department and Department of Housing and Urban Development, Reuters News Service reports.
The pilot program, dubbed Project Lifeline, is supported by Treasury Secretary Henry Paulson and will further encourage borrower contact as well as broaden Paulson’s moratorium announced in December, 2007, which froze interest rates on certain adjustable-rate mortgages, to include all kinds of home loans. Homeowners won’t qualify for the 30-day-freeze if they are in bankruptcy, if they already have a foreclosure date within 30 days or if the loan was for an investment or vacant property.
The banks, which are estimated to collectively service about half of the U.S. mortgage market, are Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., J.P. Morgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co.
No comments:
Post a Comment