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The Treasury also stressed it was still introducing programs, including those aimed at reducing mortgage principal.
Homeowners are reducing mortgage debt by making, or maintaining, higher repayments using the extra cash generated by lower mortgage rates.
Initially, the banks resisted reducing mortgage debt, but the attorneys general insisted that debt reduction was critical to the plan.
Reducing mortgage balances could be the issue that draws the most scrutiny for Mr. Watt during the confirmation process.
Yet, rather than attack foreclosures directly, the Bush administration's latest economic rescue proposal is to try to spur home buying by reducing mortgage rates.
Beyond the cash relief, the 13 mortgage lenders will provide $5.7 billion in other assistance like reducing mortgage balances and refinancing burdensome loans.
Similar(29)
Bankers say that generously easing loan terms or reducing mortgages outright would only encourage homeowners who can pay to pretend they can't.
The first step should be to reduce mortgage interest rates.
The banks are choosing not to reduce mortgage rates further.
"Making Home Affordable" does not compel lenders to reduce mortgage balances.
True, consumers are benefiting from their purchasing power being lifted by sharply reduced mortgage payments and retreating inflation.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com