Banks Ease Loans for Homeowners

    Elva Daniels, right, who is facing foreclosure protest with her daughter Taiasha Rowland and grandson Cristopher Baker,14 months, Thursday, March 24, 2011, outside City Hall in Philadelphia. Protesters called for a halt to the planned resumption of Sheriff’s Sales in Philadelphia and for U.S. Department of Housing and Urban Developmen to implement the Emergency Homeowner Loan Program.

    Matt Rourke / AP Photo

    Cutting mortgage balances is supposedly so rare that Federal Reserve economists said in March they couldn't find any evidence lenders were doing it. But now J.P. Morgan Chase and Bank of America are easing loans for tens of thousands of borrowers who aren't even in default. The unsolicited modified loans help homeowners deemed to be at special risk, and the banks hope reducing negative equity would spark a housing recovery.

    Read it at The New York Times