The Treasury Department is mulling over a series of ideas to deal effectively with the housing crisis and help homeowners refinance their mortgages.
While the Obama administration is still considering the pros and cons of each of the ideas laid out in the discussion, the president has shown his intention to anounce a feasible plan next week after narrowing down his options to the most viable ones.
Out of the several ways, the treasury is considering to mitigate the country's economic woes, one is to bring down home mortgage payments through a cut in the rate of interest. Mortgage service providers and the goverment would share the cost of this cut down.
Presently, Fannie Mae and Freddie Mac are focussing on modifying their loan structure for defaulters who are 90 or more days behind the schedule. The idea is to broaden the scope in order to include other mortgages also.