Posted: Nov 30, 2009 7:50 AM by Associated Press
The Obama administration plans to announce an expanded program today to battle a foreclosure crisis that shows no signs of relenting. The government wants to step up pressure on mortgage companies to do more to help people remain in their homes.
Treasury spokeswoman Meg Reilly says the goal is to increase the rate that troubled home loans are converted into new mortgages with lower monthly payments. Industry officials say part of the new effort will be to highlight firms that are lagging in that area.
The Treasury is also expected to announce that it will wait until the loan modifications are permanent before paying cash incentives to mortgage companies that lower loan payments. The government support, which is provided from the $700 billion financial bailout program, is aimed at providing cash incentives for mortgage providers.