""The goal of this policy is to avoid preventable foreclosures on such assets through sustainable loan modifications and other actions that are consistent with the Federal Reserve's obligation to maximize the net present value of the assets for the benefit of taxpayers," according to the document.
The Fed's "Homeownership Preservation Policy" lets the central bank or its agents "promptly" review applicable mortgages to determine whether the borrowers should be offered a loan modification, the document said. Qualified borrowers must be at least 60 days late on their payments."
That is what bloomberg is saying about those in jeopardy of loosing their home through Bear Sterns and American International Group mortgages. The policy is trying to help those that are 60 days or more overdue on their loan and covers modifications of rate and payments.
From what we have seen in the past, fed ran programs are less then helpful for those needing help, and instead of actually helping are designed to be a PR stunt.
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