When Bank of America said this week it planned to cut the principal on 45,000 underwater mortgages, some analysts were concerned.

The Obama administration unveiled new features in its mortgage modification program on Friday, providing new hope for borrowers who are unemployed or severely underwater on their mortgages.

The Obama administration lays out adjustments to be made in its billion mortgage-modification program, with the aim of assisting a greater number of unemployed homeowners avoid foreclosure.