The Obama administration will soon announce changes in the mortgage relief program that will include additional protections to ensure homeowners are treated fairly and consistently under the program.

The new policies would address long-standing complaints from housing counselors where lenders proceed with foreclosures while homeowners were undergoing evaluation for relief. The procedure will be prohibited under the new rules.

With the new policies, lenders would have to cease all legal action once a borrower enrolls in the program.

While borrowers rejected from the program would be given 30 days to appeal the decision. During that time lenders may schedule a foreclosure sale but not proceed to conduct it pending appeal.

Also, it would be now mandatory for mortgage companies to consider applications from homeowners in bankruptcy whereas this was just an option under the current rules.

The $75 billion program is intended to lower borrowers' monthly payments by reducing mortgage rates to as low as 2 percent for five years and extending loan terms to as long as 40 years.

To complete the process, homeowners need to make three payments and provide proof of their income, submit a letter documenting their financial hardship.