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The Obama Administration, in orders to the Treasury Department, is poised to propose reforming Residential Mortgage Foreclosure Modification on the day of this post. Further developments will be posted here after they happen.
In a press conference scheduled for later on this morning of Friday, March 26, 2010, unnamed individuals employed in the "Obama administration" reportedly will announce three (3) legislative or regulatory proposals:
1. "Encourage" Lenders to reduce principal on certain Residential Mortgages.
2. Authorize the Federal Housing Administration to refinance "loans from borrowers whose home's [sic] value has sunk below what they owe on it," i.e., to refinance loans previously secured by borrowers with mortgages on houses in which they are "underwater" or owe more than the house is worth. This proposal would be extended even to homeowners who have not fallen behind in their mortgage payments.
3. Require Lenders to "offer" unemployed Borrowers reductions in their payments "for a minimum of three months."
So far these proposals seem to be talk. It is not clear whether they depend on legislative enactment, regulation overhaul, or both. Until approved and enacted, these proposals are moonbeams in the hand, there is really nothing there at all: Except hope.
When these changes are made, I will post them here.
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