U.S. lenders to pause delinquent mortgage foreclosures

WASHINGTON (Reuters) - Six top mortgage lenders and servicers on Tuesday launched a new program aimed at staving off foreclosure for seriously delinquent borrowers in the hopes that new, more affordable loan terms can be worked out.

"Project Lifeline," backed by the U.S. Treasury and Department of Housing and Urban Development, would pause foreclosure proceedings for borrowers more than 90 days in arrears while services determine whether they could make payments under new terms, the lenders said in a statement.

The effort would cover all types of home loans, unlike an earlier plan aimed at freezing interest rates for subprime mortgage holders who cannot afford rates that reset to higher levels.

The plan is being undertaken by six mortgage lenders that said they service about 50 percent of U.S. mortgages -- Bank of America, JP Morgan Chase & Co, Citigroup, Countrywide Financial, Washington Mutual and Wells Fargo.