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Effort to stop foreclosures begins

Six financial institutions have instituted a program to prevent home foreclosures.

The program, dubbed Project Lifeline, targets severely delinquent borrowers. It will stall foreclosure proceedings for all borrowers more than 90 days in arrears, allowing lenders to determine whether the borrowers can make payments under new terms.

The program covers all types of home loans and is an extension of Hope Now, a plan that temporarily freezes interest rates on subprime loans.

Project Lifeline has the backing of the U.S. Treasury and U.S. Department of Housing and Urban Development.

It is supported by Charlotte, N.C.-based Bank of America (NYSE: BAC), New York City-based Citigroup Inc. (NYSE: C), Calabasas, Calif-based Countrywide Financial Corp. (NYSE: CFC), New York City-based JPMorgan Chase & Co. (NYSE: JPM), Seattle-based Washington Mutual Inc. (NYSE: WM) and San Francisco-based Wells Fargo & Co. (NYSE: WFC).

The six financial institutions are part of the Hope Now alliance, which includes 25 loan servicers across the nation.



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