Pursuits
Delinquent Homeowners Could Get Respite After Obama Plan Expires
- Trade group plan would reduce borrower payments by 20 percent
- MBA proposal would replace Obama’s primary response to crisis
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A critical lifeline for troubled borrowers in the U.S. expires this year, and mortgage lenders want a say in how to replace it.
The Mortgage Bankers Association, the largest home lender trade group, on Friday plans to propose a substitute for the Home Affordable Modification Program, President Barack Obama’s signature response to the foreclosure crisis. The new program would cut distressed mortgage borrowers’ monthly payments by at least 20 percent through a combination of interest-rate reductions, extended loan terms and principal forbearance or forgiveness, among other tools.