Treasury’s Stegman Says U.S. Will Expand Underwater Mortgage Aid
The Obama administration will work to refinance mortgages for so-called underwater borrowers with loans in private-label securities, U.S. Treasury Department official Michael Stegman said today in a Las Vegas speech.
Treasury may act unilaterally to aid borrowers who owe more than their homes are worth if Congress doesn’t pass legislation provide assistance, Stegman, a Treasury counselor on housing policy, said in remarks prepared for an American Securitization Forum conference.
“Legislation would facilitate a refinance, whereas under our existing authority, Treasury could only modify the most deeply underwater loans and pay investors for some amount of forgone interest,” Stegman said.
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