White House Unveils
Home Mortgage Plan
February 12, 2008 · White House Officials unveiled a plan
on Tuesday aimed at helping at-risk borrowers avoid mortgage foreclosure.
The initiative, dubbed Project Lifeline, was announced by Housing
and Urban Development Secretary Alphonso Jackson and Treasury Secretary
Henry Paulson. For qualified homeowners, it will put the foreclosure
process on hold for 30 days.
"Project Lifeline is a valuable response, literally a lifeline,
for people on the brink of the final steps in foreclosure,"
Jackson, said at a joint news conference.
Paulson said the plan was just one of a number of approaches the
administration was pursuing.
The program was put together by six of the largest financial institutions,
which service nearly 50 percent of the nation's mortgages. The participants
are Bank of America Corp., Citigroup Inc., Countrywide Financial
Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells
Fargo & Co.
The lenders say they will contact homeowners who are 90 or more
days overdue on their monthly mortgage payments and give them the
opportunity to put the foreclosure process on hold for one month
while terms of their payments can be re-worked to make them more