Treasury Plan: Mortgage Principal Reductions for Underwater Homeowners, Help for the Unemployed

UPDATE:  Treasury Press Release. 
The press release also contains links to FAQ and various mortgage-debtor scenarios.

The Federal Housing Administration will take over underwater loans and reduce mortgage principal then reissue new loans, begining in September.   Read here. 

And according to the WaPo, the Obama Admin will order mortgage lenders/servicers to slash or suspend mortgage payments