The goverment in conjunction with Fannie Mae, Freddie Mac and 27 loan servicers are trying a new program for homeowners in trouble with their mortgage. The new program is targeted at high-risk borrowers who have missed 3 or more mortgage payments but have not yet filed for bankruptcy. The program is designed to get them current by reducing their payments to 38% of their gross monthly income (I believe the previous was 43%). To get the payments down to that level, lenders and loan servicers may agree to extending the loan up to 40 years, lower the interest rate on the loan or reduce the principal and add it to the back end of the loan. Lenders who decide the cannot create an affordable payment using this program will  further evaluate the borrowers situation under a standard modification process. We certainly need the help but I'm not sure this is all that great. Better than nuttin' I suppose.