Just a week after being unveiled, Project Lifeline was expanded to include all members of the Hope Now Alliance, which is comprised of a bevy of mortgage lenders and servicers.
It had previously been announced as a pilot program involving Bank of America, Citigroup, Countrywide, JPMorgan Chase, Washington Mutual and Wells Fargo.
“I am impressed with the HOPE NOW Alliance’s swift adoption of Project Lifeline. Just last week we saw six servicers take the lead and agree to this initiative,” Treasury Secretary Henry Paulson said in a statment on his website.
“Now that all HOPE NOW members have signed on, more than 90 percent of the subprime servicing market and nearly 70 percent of the entire mortgage servicing market is committed to this coordinated method of reaching more homeowners.”
As part of the plan, letters will be sent out to delinquent homeowners more than 90 days behind on their mortgage payments, at which point they have 10 days to respond and provide additional financial information so the lender can determine new payment options.
Project Lifeline will allow seriously delinquent homeowners to delay foreclosure proceedings for 30 days while lenders attempt to work out new terms to avoid one.
“Project Lifeline is one more means of helping homeowners, and combined with the other parts of HOPE NOW’s outreach, these initiatives can make a measurable difference. I look forward to seeing reports of the impact of these commitments,” Paulson said.