Mortgage Loss Mitigation And Homeowner Protection

The Act's purpose statement includes, and requires that in implementing its programs Treasury consider: protection of home value, preservation of homeownership and stabilization of communities. Specific provisions exist to encourage foreclosure mitigation efforts.

Treasury must coordinate with the Federal Reserve, the FHFA and the FDIC (together with Treasury, the "Federal property managers"), each in its capacity as an owner of mortgages and mortgage-related securities, to identify opportunities for the acquisition of classes of troubled assets that will improve Treasury's ability to improve loan modification and the restructuring process. Modifications of existing mortgages are encouraged through use of the HOPE for Homeowners Program, as well as by effecting term extensions, rate reductions, principal write-downs, increases in the proportion of loans within a pooled structure allowed to be modified, or removal of other limitations on modifications. With respect to