By STEVENSON JACOBS
AP Business Writer
NEW YORK – The nation’s banks suddenly find themselves under pressure to throw greater lifelines to their most troubled mortgage borrowers. But don’t expect every struggling borrower to get a bailout.
Bank of America has already announced that it would forgive some of the principal for homeowners who owe more than their homes are worth. And the Obama administration will announce today a plan that would reduce the amount other struggling borrowers owe, two people briefed on the matter said.
The two people declined to be identified because the program had not yet been announced. But Herbert Allison, an assistant Treasury secretary, told reporters Thursday that officials are close to expanding the administration’s $75 billion foreclosure relief effort.