by Ruth Simon
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Banks offer a new tool for home refinancingSome of the nation's biggest lenders, including Bank of America Corp., J.P. Morgan Chase & Co. and Wells Fargo & Co., are beginning to roll out a new program established by the Obama administration as part of its housing-rescue plan to help refinance homeowners who otherwise couldn't get new loans.
In February, President Obama announced a $275 billion plan to stabilize the housing market and reduce foreclosures. One key component: a plan to allow as many as five million homeowners to refinance their mortgages, even though they have little equity or owe slightly more than their home is worth.
The program is open to borrowers who are current on their payments, have loans owned or guaranteed by government-controlled mortgage giants Fannie Mae or Freddie Mac and owe between 80% and 105% of their home's current value.
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