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Builders Support Project Lifeline for Strapped Borrowers
Project Lifeline, a new program unveiled on Feb. 12 by the Bush Administration to help strapped home owners avoid foreclosure, received the support of the nation's home builders.
"We appreciate the continuing efforts of the Administration to address the mortgage credit crisis and believe that the action that banks and mortgage lenders are pledging to take can make an important difference," said 2007 NAHB President Brian Catalde.
In addition, Catalde urged Congress to follow up on its recently enacted economic stimulus program by passing legislation to jump-start the housing market and keep the economy moving forward. More specifically, he called on Congress to modernize the Federal Housing Administration and reform the housing government sponsored enterprises Fannie Mae and Freddie Mac.
Project Lifeline will allow overdue home owners to avoid foreclosures for 30 days while lenders and borrowers try to work out more affordable terms. The plan will involve several large mortgage lenders — Bank of America, Citigroup, Countrywide Financial, JP Morgan Chase & Co. and Washington Mutual. It is geared toward delinquent home owners whose mortgages are 90 days or more past due.
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