Full text of Statements and Speeches of Sheila C. Bair : [Remarks] at the Brookings Institution Forum, the Great Credit Squeeze: How it Happened, How to Prevent Another, Washington, D.C. : Slides

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Loan Restructuring Example
For a $200,000 Loan
Current Monthly Income

$3,500

Current Monthly Payment

$1,744

Initial DTI

50%

After Principal Reduction of $40,000 and New Fixed Rate of 5.88%
Years 1 - 5
New Monthly Payment
DTI

$1,222
35%

Years 6 - 28
Monthly payment on treasury loan
Total Monthly Payment
DTI

$235
$1,457
39%