More on the Obama plan

The Obama Administration has offered more information about the foreclosure prevention program, though more details will likely trickle out later. The $75 billion program would give homeowners principal reductions of $1,000 a year for five years if they maintain payments. It would also and give lenders up to $1,000 if they modify loans with success fees if the borrowers stay current.

Alternatively, if a lender lowered rates so that homeowners were spending 38 percent of their monthly income on their mortgage, the government would match funds to lower that payment to 31 percent of income. Fannie and Freddie would be required to relax refinancing standards somewhat. Up to 5 million could refinance their mortgages because of this plan, the administration believes. 

For more:
- here's the Washington Post article

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