Bank of America announces a new program for beleaguered home owners that allows for borrowers that are at least 20% underwater to reduce 30% principal of the total mortgage balance reduced.
Citibank responds by saying they have no plans yet to reduce principal. Citi reviews borrowers an a case-by-case basis and has reduced principal after all other options of affordability have been exhausted.
February Existing Home Sales came in yesterday in-line with analyst estimates.
Do you think this will effect the economy negatively and increase bank losses or is this a necessity to help heal the housing market woes?
