More FED foreclosure bail out plans?

[Account Closed]

The Associated Press
Feb. 11, 2008 05:52 PM
WASHINGTON - With mortgage defaults surging and politicians urging the industry
to do more, six lenders agreed to widen their effort to help borrowers of all
loans — not just subprime.

The plan, called Project Lifeline, is to be announced Tuesday by the Treasury Department and the Department of Housing and Urban Development, a person familiar with the plan said Monday evening, confirming earlier news reports and speaking on condition of anonymity because it had not yet been made public.

http://www.azcentral.com/business/articles/0211biz-mortgagemesshelp11-ON.html

On a pilot basis, the plan will involve six of the largest mortgage lenders, in hopes that more lenders will sign on. The participants are Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co.

All six are involved in Hope Now, an effort the Bush administration brokered with the mortgage industry late last year to freeze rates on some high-cost subprime mortgages for five years to aid borrowers whose teaser rates are jumping sharply higher. Since then, Treasury Secretary Henry Paulson has urged lenders to expand that effort to cover struggling homeowners with conventional mortgages.

http://www6.comcast.net/news/articles/general/2008/02/12/Mortgage.Mess.Rescue/