But Anthony Hsieh, chief executive of LoanDepot.com, an online lender, said they might qualify for new loans.
But interest rates are higher than they were and lending standards have tightened, making it harder for borrowers to qualify for new loans.
And the unemployed (and underemployed) are worried about staying current on their existing debts, and probably would not qualify for new loans anyway.
Homeowners fell behind on their loans and could not qualify for new ones: There was no value left in their house to borrow against.
Mr. Baker said those who can qualify for new mortgages in the tightened credit market are probably well served not to pump cash into expensive home improvements.
The basic notion is to ease refinancing rules for borrowers who are current in their payments but can't qualify for new lower-rate loans because their home values have declined.
Nor did the reviews focus on faulty loan-modification processes, like instances in which bank employees wrongly told borrowers they needed to be delinquent to qualify for new loan terms.
The changes, which will take effect over several months, will let people qualify for new loans no matter how far the values of their homes have fallen, so long as they have made at least six consecutive monthly payments.
Third, for those homeowners who do not have the income to qualify for new financing, a federally financed land bank should buy the property from the lender at a steep discount and rent it to the former homeowner.
The Resolution Foundation has warned only 160,000 families in the bottom 40% of the income distribution will qualify for new help, compared to 1.7 million in the top 40% by income.
In order to work beyond the traditional retirement age, workers will be pushed by growing labour market uncertainty and flexibility to fund retraining to upgrade existing skills or qualify for new careers ·Late-life spending.
