| Mortgage Plan Remodeled Again The Obama administration said Friday it would step up help for borrowers who owe more than their homes are worth. But officials also tried to tamp down expectations for their latest revamp of the government's year-old foreclosure-prevention drive.生活 Some of the adjustments face logistical hurdles and it could be months before the initiatives are in place.Pearl rings Diana Farrell, a senior White House economic adviser, said the programs couldn't be expected to prevent the majority of expected foreclosures. "The purpose is to deal with just enough of the overhang…where we have a real chance of changing the dynamic," she said. The overhaul creates a much bigger role for the Federal Housing Administration, which will offer a new way for some underwater borrowers to refinance into a smaller loan. Previous efforts to refinance underwater borrowers have faced challenges. The FHA plan is targeted at investors who own mortgages that were bundled and sold by Wall Street. Under the plan, such mortgage holders would write down the principal of a first mortgage at least 10%. The loans would then be refinanced into FHA-insured mortgages. To qualify, homeowners must be current on their loan,生活 occupy the home as a primary residence, Pearl ringsfully document their income and have at least a 500 credit score. For borrowers with second mortgages, total mortgage debt would have to be written down to a maximum of 115% of the home's current value. The government would pay the holder of the second lien, but their cooperation wasn't assured. Some mortgage investors have been clamoring for such a plan. 生活"I would not overstate, by any stretch, expectations that this is going to be a huge program in the investor community," said FHA Commissioner David Stevens.Pearl rings He said it would appeal to investors who have an exposure to markets where home prices have plunged. |
