The government's mortgage insurer, the Federal Housing Administration, is at the center of the new program for underwater homeowners. FHA is now offering certain non-FHA borrowers with negative equity, who are current on their existing mortgage, the opportunity to refinance into a new FHA-insured loan, as long as their existing lien holders agree to write off at least 10 percent of the unpaid principal balance on the first mortgage. DSNews.Com reported this but also warns that participation in the program is voluntary so lenders have the option to agree or not to participate. 





http://www.dsnews.com/articles/fha-program-for-underwater-borrowers-now-underway-2010-09-07