On February 18, 2009, the Obama Administration announced a major assistance program to help millions of distressed mortgage borrowers avoid foreclosure or overcome obstacles to refinancing their loans. The program was announced as FDIC Consumer News went to print, and details were still being developed by the Administration.

The plan features two types of assistance for borrowers – loan modifications that reduce the monthly payment amounts for those at risk of losing their home to foreclosure, and refinancing opportunities for borrowers who are current on their mortgage payments but have been unable to refinance because their homes have significantly decreased in value. For updates and more information, in areas such as who may qualify for loan-modification or refinancing assistance, visit www.financialstability.gov.

The Administration stressed that there will be no fee for loan-modification or refinancing assistance through the new program, so borrowers should be wary of any organization charging a fee, especially if it asks for money in advance.

For basic tips from the FDIC on what to do if you have problems paying a mortgage or other expenses, including ways to find a reputable counselor, see When Payments Are a Problem.