Obama Administration to Announce Expansion of HAMP – Principal Reductions and Help for Unemployed

Although unofficial, the rumors are that the expansion will allow unemployed borrowers to make significantly reduced payments—or potentially a break from making any payments at all—for at least three and in some cases, up to six months. The changes are also said to require banks to consider writing down principal loan balances as part of the formula for lowering monthly payments under the federal Home Affordable Modification Program, or HAMP.

Did you see what they did there?