A plan being discussed by state and federal officials could offer refinancing options to some homeowners whose houses are worth less than their loans.
Typically such borrowers aren't able to refinance because they have no equity.
Borrowers must be current on mortgage payments and the proposal would apply only to mortgages owned by the banks.
The majority of U.S. mortgages are held by investors in mortgage back securities.
Talks between the government and banks are expected to continue this week.