On March 26, the Obama administration announced initiatives to enhance HAMP and FHA programs to provide relief for unemployed and underwater borrowers.  The changes to HAMP will: (i) temporarily reduce mortgage payments for unemployed borrowers while they look for new jobs, (ii) encourage servicers to write down principal, (iii) allow more borrowers to qualify for HAMP modifications, and (iv) help borrowers move to more affordable housing where modifications are not possible.  Utilizing up to $14 billion in TARP funding, the FHA initiatives will provide incentives for servicers to refinance underwater mortgage loans into FHA-insured loans and for owners to write down second lien loans for these borrowers.  Release.