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Email not displaying correctly? View it in your browser. White House to Announce Plan to Cut Mortgage Principals The Obama administration plans to announce a major new housing initiative Friday involving principal write-downs for underwater borrowers and temporary assistance for unemployed homeowners, according to sources. It's expected that principal reduction will become a central consideration in Home Affordable Modification Program (HAMP) evaluations, with additional incentives going to servicers who trim mortgage debt for those who owe more than their home is worth. The plan will also require lenders to temporarily reduce monthly mortgage payments for those borrowers who have lost their jobs. Treasury Adds New Consumer Protections to HAMP The administration's foreclosure prevention plan has come under heavy fire lately, with critics taking aim at everything from the program's slow conversion rates to servicers' lack of response to borrower and counselor requests. To counter all the flying bullets, a Treasury official told lawmakers Thursday that the administration is instituting new consumer protections into the program, including requiring servicers to evaluate all borrowers who've missed at least two payments and prohibiting foreclosure proceedings until it's determined borrowers are HAMP-ineligible. Texas Posts Nation's Largest Monthly Foreclosure Increase: Study Texas claimed the biggest increase in foreclosures during the month of February with a rise of 35.3 percent, according to new data published by ForeclosureListings.com. Posting the second largest increase was Michigan, where foreclosures jumped 17.54 percent during the month. California came in at No. 3, followed by Florida. The report did note some signs of improvement, with foreclosures actually declining in such states as Georgia and Arkansas. Citi Agrees to Participate in Second Lien Program Citi announced Thursday that it has committed to participate in the administration's second lien modification program (2MP). The New-York based global financial services company is the fourth major servicer to sign on to the program, which was introduced nearly a year ago. Bank of America, Wells Fargo, and Chase have also agreed to participate in the program. Together, these four servicers own $400 billion of the nation's $1 trillion second lien mortgage market. You are receving this email because you opted in at our website dsnews.com or attended a Five Star Conference. Unsubscribe roballeyrealtor@gmail.com from this list. Corporate Office: DS News 1909 Woodall Rodgers Suite 300 Dallas, TX 75201 Add us to your address book Washington Bureau: 1101 Pennsylvania Avenue NW Suite 600 Washington, D.C. 20004 Copyright (C) 2009 DS News All rights reserved. Forward this email to a friend Update your profile QUICK LINKS DSNews.com DS News' Red Book DS News' Black Book 2010 Five Star Conference DARE