Federal agencies responsible for setting housing policy are clashing over a new program designed to help borrowers with underwater mortgages.

According to the Federal Housing Administration, the program could avert foreclosures. The Federal Housing Finance Agency, however, claims an expanded program would be too costly.

Federal data indicates that one in four borrowers owes more on their mortgages than their homes are worth. These borrowers are vulnerable to foreclosure because it is difficult to refinance or sell their homes without equity. Housing advocates say helping underwater borrowers is important to stem the nation's foreclosure tide.

If you are considering refinancing to avoid foreclosure, you should be aware of everything that goes into the process. To learn more, contact Chaifetz & Coyle, P.C., the Maryland Mortgage Refinancing Lawyers, today by calling 443-546-4608.