Obama administration changes position on foreclosures

Last year, the Obama administration was committed to mitigating the wave of foreclosures. Now, CNNMoney reports that officials are highlighting the need for foreclosures.

Phyllis Caldwell, head of the Homeownership Preservation Office, told a congressional panel last week that “an important part of ensuring longer-term stability in the market is to enable properties to be resold to families who can afford to purchase them."

In February 2009, Obama introduced an initiative to reduce distressed borrowers’ payments to 31% of their pre-tax income.