WASHINGTON (AP) - Home lenders are partnering with the White House to offer help to all homeowners facing foreclosure, not just those with subprime loans. The Bush administration will announce a program called Project Lifeline in the morning. It would allow seriously overdue homeowners to suspend foreclosures for 30 days while lenders try to work out more affordable loan terms. Six of the largest mortgage lenders will participate in the plan. The same banks are taking part in the Hope Now program which was initiated late last year. That plan freezes rates on some high-cost subprime mortgages for five years. Consumer groups are skeptical. They claim many borrowers still can’t keep up with payments even after loan workouts. The groups claim a full-fledged refinancing at a lower rate would be better for borrowers.
Filed under: National News
