Gov’t to unveil plan to shrink home loans
WASHINGTON (AP) – The Obama administration will announce Friday a plan to reduce the amount some troubled borrowers owe on their home loans, after months of criticism that it hasn’t done enough to prevent foreclosures.
The effort will let people who owe more on their mortgages than their properties are worth get new loans backed by the Federal Housing Administration, people briefed on the plan said.
It would be funded by $14 billion from the administration’s existing $75 billion foreclosure-prevention program.
The people briefed on the plan declined to be identified because the details had not yet been announced.