Bank of America's President Floyd Robinson Announced Project Lifeline to Help Distressed Borrowers

Today,  Bank of America played an important role in a major national effort to assist homeowners in danger of losing their homes. Appearing with U.S. Treasury Secretary Hank Paulson and U.S. Housing and Urban Development Secretary Alphonso Jackson, Bank of America's Consumer Real Estate and Insurance Services Group President Floyd Robinson served as the spokesperson for six mortgage servicers who announced Project Lifeline, a new program aimed at delinquent borrowers.

Robinson conveyed Bank of America's support for Project Lifeline, which will target severely delinquent borrowers to encourage them to respond to their mortgage servicer and pursue loan modification options. Project Lifeline continues HOPE NOW's original focus and expands its outreach to severely delinquent mortgage and home equity borrowers.

"The foreclosure crisis is having a serious economic and social impact on communities across the United States," Robinson said. "Bank of America strongly supports this private enterprise initiative to build upon the efforts of HOPE NOW's previous success in preventing foreclosures."  Through this innovative program, homeowners will be provided a simple step-by-step approach that may enable them to "pause" foreclosure 30 days while a potential loan modification is evaluated. The Project Lifeline alliance members believe that for some homeowners, the extra time will make the difference that will allow them to avoid foreclosure. Homeowners who are eligible for the program will receive a letter from their mortgage servicer.

Bank of America has the lowest foreclosure rates in the industry, and neither originates nor services subprime mortgages. Therefore, Project Lifeline likely will have a less significant impact for Bank of America than for some of the other financial institutions in today's announcement. Leaders throughout Bank of America believe it's important for the health of the economy to participate in and support measures like Project Lifeline.  Robinson said, "Given the dynamic environment in the housing market - with declining home values, fluctuating interest rates and an elevated housing inventory - the members of the alliance believe it's critical that we do everything we can to reach these homeowners....We're proud to be among the companies making this announcement today...Bank of America has always said that its goal is to put people in homes and to keep them in homes."

In addition to Bank of America, Project Lifeline is supported directly by Citigroup, Countrywide, JP Morgan Chase, Washington Mutual and Wells Fargo. All six servicers are part of the HOPE NOW Alliance, which includes 25 servicers across the nation.

For additional information:

1. Delinquent in Your Mortgage Payment? Don't Run! Don't Hide!
2. There Is HELP for the Delinquent Borrower!
3. Don't Make Foreclosure Worse for Yourself

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages  or at Bank of America Mortgage