Anyone Understand Obama's "Mortgage Modification"? A woman I know here just refinanced her house apparently according to Obama's "Mortgage Modification". The lender quoted her a very good fixed interest. Then, on the day of the signing (yesterday) they suddenly told her the interest had to be higher and it had to be an adjustable rate mortgage. They pressured her to sign, claiming there was some deadline, and she caved. I can't really find anything online that isn't posted by mortgage lenders. Does anyone know what this "mortgage modification" actually requires? Is it a law with specifications that the woman could demonstrate the lender has violated with their bait and switch? When I ran into her yesterday she was very depressed because she had discovered earlier that her monthly payments were going to start at $600.00 more a month than the bank had quoted. With an ARM, they're only going to go up from there. Now she can't plow money into fixing the place up bit by bit as she'd hoped. She felt she couldn't back out because she had a balloon coming up on the old mortgage and had to pay that off.