BUSINESS
03/20/2009 05:12 am ET Updated May 25, 2011

Obama May Press Banks To Cut Mortgage Payments

WASHINGTON -- President Obama's plan to reduce the flood of home foreclosures will include a mix of government inducements and new pressure on lenders to reduce monthly payments for borrowers at risk of losing their houses, according to people knowledgeable about the administration's thinking.

The plan, to be announced Wednesday, is expected to include government subsidies for reducing a borrower's interest rate, which a lender would have to match with its own money.

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