Six US banks join hands to avoid mortgage defaults

It’s all happening in the US. The Subprime mortgage bug is not leaving the US easily. Six of the top mortgage lenders, which include big names like Bank of America, Citigroup and other four mortgage lenders have decided to come together and help chalk out certain steps to help the mortgage borrowers who face the bad situation of default on their mortgage repayment.
They are expected to work together on certain points, providing a guideline to mortgage borrowers, so that the borrowers may not have to vacate the house for want of repayments.

The plan is called “Project Lifeline” offering. The companies met with Treasury officials over the past week to discuss ways to encourage homeowners to get in touch with their mortgage servicers. The move is coming due to the mounting pressure from the US treasury. News is that JPMorgan Chase., Wells Fargo, Washington Mutual and Countrywide Financial may also participate in this offering. These all six are the group members of a strategic alliance called “Hope Now”, that was formed last year, to avoid a spring up of foreclosures in the mortgage lending markets of US.

The estimates are that around 2 million mortgage owners face the problems with the mortgage due to higher mortgage rates and inability to repay them. Prevention is better than cure – good to see that the debt ridden banks and lenders are taking proactive steps to curb the problem. Hope that this end up in a helpful way instead of again pushing the mortgage borrowers in trouble!

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