Federal housing plan to help one in nine homeowners

The Obama administration announced that one in nine homeowners could get assistance from its housing plan, including low-income residents facing foreclosure and well-off borrowers who owe more than their homes are worth. As part of the plan, the government will offer financial incentives and subsidies to persuade mortgage-servicing companies to lower interest rates and extend payment periods for people who are in financial trouble and are in danger of losing their homes. The plan’s other main component calls for Fannie Mae and Freddie Mac to refinance loans for borrowers who owe more than their homes are worth, even if they are wealthy enough to afford their current payments.