One million homeowners may get mortgage writedowns: U.S. - Yahoo! News
About one million American homeowners would get writedowns in the size of their mortgages under a proposed deal with banks over shady foreclosure practices, Housing and Urban Development Secretary Shaun Donovan said on Wednesday.
The deal, which could be struck within weeks, would mark the largest cut in the mortgage load since the start of the credit crisis in 2007 and could pressure the government-sponsored mortgage agencies to also reduce principal on underwater home loans.
With the election closing in and with even the Fed saying that something has to be done for homeowners, the Obama Administration finally inches onto the thin ice of large-scale principal reduction. Now if we could just make some headway on turning underwater owners into renters we might have the start of a real housing policy.