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[bob ford <bobford79 AT yahoo.com>]

If your neighbor didn't make his mortgage payment, worry not, hundred of 
billions of taxpayer money will make his mortgage good, along with another 
3million non-payers.  And, gee, won't the banks be happy 

If the first bail-out didn't make people red-in-the-face, I'm interested tom 
see the response to this one... Be sure and thank your memeber of congress.  
They are pushing the treasury on this one, especially hard..bobford



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Government May Guarantee 3 Million Mortgages
 


By Peter Whoriskey, Zachary A. Goldfarb and Binyamin Appelbaum
Washington Post Staff Writer 
Wednesday, October 29, 2008; 5:13 PM 

Officials with the Treasury and the Federal Deposit Insurance Corp. are 
nearing agreement on a plan under which the government would guarantee the 
mortgages of millions of homeowners now struggling to avoid foreclosure. 

According to three sources familiar with the discussions, the plan would 
cover up to three million homeowners. It would cost between $40 billion and 
$50 billion and cover as much as $600 billion in mortgage loans. 

Under the program being discussed, the lender would agree to reduce 
borrowers' monthly payments based on their ability to pay. The reductions 
could be achieved by lowering the interest rate, slashing the amount owed or 
extending the repayment period. 

These reconfigured loans would help homeowners avert foreclosure. 

In exchange, financial institutions that agree to participate in the program 
would receive a government guarantee for a portion of any losses occurring if 
borrowers default on the reconfigured loan. 

Treasury officials confirmed that discussions were underway for homeowner 
aid, but said any figures remain fluid, and that other options are under 
consideration as well. 


"While we have had productive conversations with Treasury about the use of 
credit enhancements and loan guarantees it would premature to speculate about 
any final framework or parameters of a potential program," said Andrew Gray, 
an FDIC spokesman. 

The mortgage guarantee program would vastly expand the role of the Treasury 
Department in helping homeowners, while at the same time ensuring some return 
for lenders. 

The program is being discussed as members of Congress are voicing 
frustrations that the $700 billion rescue program thus far has been aimed at 
helping banks, but not homeowners. 

While Treasury and FDIC officials have reached an agreement on the principles 
of the program, the White House is resisting, according to the sources, who 
declined to be identified because the negotiations are ongoing. 





http://www.washingtonpost.com/wp-dyn/content/article/2008/10/29/AR2008102902605.html?hpid=topnews