Bank of America, 5 other lenders offer broader mortgage plan

WASHINGTON (AP) — Bank of America and five other major lenders are widening their effort to help borrowers and let overdue homeowners suspend foreclosures for 30 days while more affordable loans are worked out.

A person familiar with the plan says the Treasury Department and the Department of Housing and Urban Development will announce Project Lifeline today. The person spoke on condition of anonymity because it had not yet been made public.

The plan will initially involve Charlotte-based Bank of America, Citigroup, Countrywide Financial, JPMorgan Chase, Washington Mutual and Wells Fargo.

All six lenders 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.

(Copyright 2008 by The Associated Press. All Rights Reserved.)