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Homework:

We learned this overnight ABC’s confirming that change will be announced later this morning. We’ve been on this * weeks ago. As you know this is the second major adjustment to the Obama Administration’s program to help those home owners of this break just this week.

The first change will affect home owners who have lost their jobs. For the first time the federal program will aggressively reach out to some unemployed borrowers. And this is key because until now major banks have the majority of cases been unwilling to modify mortgages for home owners out of work. The banks say because it couldn’t establish income. Under the change, some unemployed home owners may now get a 6 months break on their mortgages while they look for work. The banks could not charge 30% of the home owners receiving and unemployment benefits. And many economists say this change must be made. The program was not working.

The second major change involves home owners considered underwater paying mortgages value higher than their home is even worth after home values plummeted in this recession. Based this program banks will reduce the mortgage payment for at least 10% to get within 50% of the real value of the home now. That new mortgage is sort of deal to keep the home owners still paying even though they are underwater and to get the banks to agree small write down or a loss of the whole instead of outbreak closure.