The government could purchase delinquent or underwater mortgages in bulk and restructure the loans using existing Federal Housing Administration programs, according to a Federal Reserve governor. Congress is considering several changes to the FHA Hope for Homeowners to make it more attractive to homeowners and servicers, Fed Gov. Elizabeth Duke told a risk management group. She suggested the government might consider reducing the interest rate that H4H borrowers pay. "The government might also consider purchasing delinquent or at-risk mortgages in bulk and then refinancing them into H4H or other FHA programs," Governor Duke said.
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