The Real Deal Miami

Obama mortgage mod program could expand low-income aid

October 16, 2009 03:38PM

The Obama administration may soon adjust its mortgage modification program to assist low-income households, according to Bloomberg. The altered program would increase the number of borrowers who could qualify for a loan modification, by allowing those homeowners whose mortgage bills that are 31 percent below their pretax incomes to restructure their debt. The changes would “expand the universe of those who are eligible to more of those who are in a position of needing government help to get through temporary stress,” Barbara Desoer, head of Bank of America’s home loan unit, said. This expansion is part of an effort to reduce the number of foreclosure filings in the residential market, as analysts warn that 7 million foreclosures are looming.