The adjustments will directly tackle the problem of the millions of Americans who owe more on their houses than they are worth. The government will buy loans from investors at the current value of the house in an effort to stabilize the market, people briefed on the plan said.

The government will also increase incentive payments to lenders that cut the principal of borrowers in modification programs. And it will require lenders to cut the monthly payments of unemployed borrowers for a minimum of three months.


HUD has issued the following documents in connection with the adjustments:

• Frequently Asked Questions (FAQs)
• FHA Refinance Fact Sheet
• Housing Rollout (Examples)
• HAMP Improvements Factsheet