Lenders reaching out to borrowers - stay tuned

The New York Times reports that lenders are becoming proactive, reaching out directly to explore loan modifications to assist borrowers .
A growing trend is emerging, with lenders and servicers willing to focus on 'affordability' in crafting loan modifications. Specifically, the trend is to work to keep housing cost 'debt-to-income' ratios at no more than 38% of gross monthly income. To achieve this level of affordability, lenders would have to be willing to reduce interest rates, extend the repayment term (ex. from 30 years to 40 years), or possibly defer or otherwise reduce principal. Housing costs would include principal, interest, property taxes, and homeowners insurance ('PITI'). By way of example, if the gross monthly income in the household is $3,000, a loan modification with housing costs of not more than $1,140 per month - or 38% of gross monthly income - would be explored.
Not all borrowers will be eligible for this or any other kind of loan modification. On a positive note, however, it appears that many lenders are becoming more flexible - and aggressive - in trying to work with borrowers to keep homes out of foreclosure.