According to the Wall Street Journal, somewhere between $1.5-1.7 billion will go toward principal write-downs on JPMorgan-held loans where the value of the mortgage is now higher than the value of the house. However, it’s believed that these write-downs will not apply for properties that are still above a certain price threshold.
Another $300,000 to $500,000 will be put toward restructuring other loans to reduce monthly payments.
Then there is the remaining $2 billion of this relief money, which is still a bit vague at the moment. The Journal reports that some of this will go toward assisting new mortgage originations for low- and moderate-income consumers. A portion may end up going to cleaning up properties in distressed areas or tearing down homes deemed ready for the wrecking ball.