Fed May Step in to Help Homeowners

In reading the news summary this morning, the Fed may be ready to flex its muscles (read leverage) to help homeowners who are 60 days delinquent on their mortgage payments.

Here's what the Fed could do: lower the mortgage amount; lower the interest rate; or lengthen the payment time.

This would occur when troubled asset relief program (TARP) funds have been provided to institutions holding those delinquent mortgages.