After being read the riot act by House Democrats, FHFB Director DeMarco has signaled that he will go past the HARP restructuring announced on Monday also to consider a new loan-mod for borrowers in bankruptcy. This plan has been described as a principal writedown, but its description is really interest deferral so that principal is more quickly amortized over a period of time when advocates hope home values will start on the upswing.

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