Wells Fargo says it “supports and will fully implement” President Barack Obama’s foreclosure prevention plan, which will help struggling homeowners lower mortgage payments.
“We believe the administration’s plan is thoughtful and comprehensive, and it addresses the current challenges our nation faces,” Mike Heid, co-president of Wells Fargo Home Mortgage, said in the company’s statement.
The U.S. Treasury Department announced details of the loan-modification program this morning. Bloomberg reports that the rescue plan sets aside $75 billion for altering troubled mortgages.
Under the program, borrowers could receive new interest rates as low as 2 percent. It will require mortgage holders to document their income and sign an affidavit describing their financial hardship.