Renae Merle and dina elboghdady of the Washington Post write:Full article here
"The administration's newest push also seek to more aggressively help borrowers who owe more on their mortgages than their properties are worth, by encouraging lenders to cut the loan balances of millions of these distressed homeowners and possibly refinance into loans backed by the Federal Housing Administration."
another article from AP:
Gov't to unveil plan to shrink some home loans
KEITH HENNESSEY WRITES:Read the whole thing here.
Imagine twin brothers, each with $180K of annual income. One rents, and the other has a $700,000 mortgage on a home that declined from $800,000 in value to $600,000 in value. Both brothers lose their jobs. Why should the renter pay higher taxes to subsidize his brother’s mortgage payments?