We are formalizing our loss mitigation policies, programs, etc. for the new mortgage servicing laws. Will loan programs specifically established to provide long-term debt relief and avoid foreclosure through restructures/modifications qualify as a product that is responsive to the needs of the bank's AA?

Search the March 2010 Interagency Q&As on CRA for the word "foreclosure" and you will find some guidance. http://www.ffiec.gov/cra/pdf/2010-4903.pdf

The following quote is from page 11655.
"Establishing loan programs with the objective of providing affordable, sustainable, long-term relief, for example, through loan refinancings, restructures, or modifications, to homeowners who are facing foreclosure on their primary residences."

That's exactly what I read that made me think we could get credit for these type of programs.

Write it up properly and you will receive credit.