More banks halt foreclosures

WASHINGTON - Several major banks are expanding their efforts to halt home foreclosures while the Obama administration develops its plan to help struggling homeowners.

The White House said President Obama would outline his plan to spend at least $50 billion to prevent foreclosures Wednesday in Arizona.

More than 2.3 million homeowners faced foreclosure proceedings last year, an 81 percent increase from 2007, and analysts say that number could soar as high as 10 million in the coming years.

JPMorgan Chase & Co., along with Bank of America Corp. and the government-controlled mortgage finance companies Fannie Mae and Freddie Mac said yesterday they were halting foreclosures through March 6. And Citigroup Inc. said its halt would extend until the administration has completed the details of the loan-modification program or March 12, whichever was earlier. Citi's action expands on a similar effort it started in November.

The banks' pledges apply to owner-occupied homes.

Obama's announcement is expected to include details about how the administration plans to spend at least $50 billion on foreclosure prevention and set national standards for modifying home loans.

A Democratic Senate aide said yesterday that the plan was likely to include hefty incentives to encourage lenders to lower mortgage rates or reduce the total principal amount owed by borrowers.