During the day today the Obama administration worked on a plan to use government funds to help reduce interest rates for struggling homeowners. They have also asked that lawmakers come up with additional ways to modify mortgages according to those who were briefed earlier on the housing plan. The plan will hopefully begin immediately and should be officially unveiled in the next week to ten days by Secretary of the Treasury, Timothy Geithner.
The Obama administration would also like to allow judges to modify loan terms as well as modifications on FHA and VA loans. While community groups are in favor of empowering judges to reduce rates for borrowers who may be in bankruptcy, investors had opposed this legislation stating that it could debilitate the secondary mortgage market as well as punishing all borrowers by raising interest rates.