Expanding the debt-to-income criteria and including investors under the new Home Affordable Modification Program (HAMP) proposal can have a significant impact on non-agency RMBS modification volumes, Bank of America Merrill Lynch analysts said.

Last Friday the Treasury Department unveiled its new plan to expand the HAMP. Among the changes it will consider are a lowering of the first-lien DTI threshold. Borrowers will no longer be required to have a 31% first-lien DTI to qualify for the program.

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