Feds plot mortgage program revamp

As part of its renewed focus on housing, the Obama administration plans to overhaul its floundering mortgage relief program and start pressuring lenders to reduce mortgage principal amounts. The strategy is gaining credibility among housing advocates and even some prominent Wall Street financiers. Bank of America was the first major lender to get on board with a principal modification program for so-called piggyback loans that were used to reduce many buyers’ down payments. Bill Apgar, a senior advisor at the Department of Housing and Urban Development, said a formal announcement is at least a couple of weeks away. [AP via Miami Herald]