Let's see if this materializes.
|Feds Re-Impose Loan Standards They Helped Undermine
By Steven Malanga
When President Obama announces Washingtonâ€™s new plan to help troubled mortgage-holders today, the betting is that the program will include a loan-modification effort that reduces the size of a besieged homeownerâ€™s debt. One goal would be to cut the size of loans and perhaps also their interest rate so that a mortgage holderâ€™s monthly payment would equal no more than 31 percent of his pre-tax income. Fannie Mae and Freddie Mac have already been experimenting with an income-to-payment ratio of 38 percent in their loan modification efforts, but Washington wants to go further, indeed probably needs to go further, if it is to stem the tide of defaults.