The squad's goal will be to modify the terms of mortgages to better fit borrowers' actual economic situations today.I suppose when they examine "today", the GSEs/lenders/investors will forgive 50% of the loan on the over-inflated purchase so they can afford a payment? Perhaps wait until a buyer can get a 100% pay increase?Get a job??Win the lottery?
Among the optional forms of modification will be lowering interest rates [the rates are already low and FB’s are still losing their homes], switching from floating-rate to fixed rate [whatever the fixed rate will be, the rate will still probably be too high for FBs to make their payments], restructuring payment schedules and deferring repayment of arrears [yeah, okay, but what about the FACT that since the FBs fell behind in the first place, they will probably do it again – will FHA/VA/FNMA, et al. defer a deferment !].
Bottom line, whatever they try will be too little, too late.