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Credit union loan committees may permit better deals for longtime members; they might also modify loan terms for borrowers they already know, Ms. Torruella said.
Both rates reflect terms for borrowers with above-average credit scores who put down 20percentt for loans of $250,000 to $500,000.
Much of that money would be used to modify the loan terms for borrowers who are delinquent or facing foreclosure, perhaps reducing the interest rate or the principal to lower monthly payments.
Another 17.9 percent have checking or savings accounts, but they still rely on alternative financial services like check cashing, payday loans and pawnshops, which typically have very unfavorable terms for borrowers.
The government's announcement on Tuesday that Fannie Mae and Freddie Mac would modify terms for borrowers who are at least 90 days late with their payments makes it seem as if only the delinquent are eligible for a personal bailout.
Yet our desire to avoid letting bad actors off the hook shouldn't prevent us from doing the right thing, both morally and in economic terms, for borrowers who were victims of the bubble.
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JPMorgan Chase, HSBC and Bank of America, which took over Countrywide and its soured mortgage portfolio, have modified terms for such borrowers.
Government programs have been encouraging lenders to modify mortgage terms for struggling borrowers, but critics have decried the slow progress of these programs, and the relief efforts are often temporary.
There is wide diversity at the moment, less in the definitions than in how regulators deal with "forbearance"—that is, banks easing terms for struggling borrowers to avoid recording loans as non-performing.
If notes underlying even some of these mortgages were improperly assigned or lost, that will surely complicate pending legislation intended to allow bankruptcy judges to modify mortgage terms for troubled borrowers.
LENDERS are increasingly willing to change their loan terms for struggling borrowers, mortgage industry executives say, but the increased flexibility has not been enough to help many homeowners who wait too long before seeking help.
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