The Times has the best description of his plan: "The plan has three basic components. One would help homeowners who continue to make loan payments on time, but are paying high interest rates and would otherwise not be able to refinance because they do not have enough equity or their houses are worth less than they borrowed. A second would assist people who are at risk of foreclosure by providing incentives to lenders to alter the terms of loans to make them substantially more affordable to struggling homeowners. The third would try to assure there is plenty of credit available for mortgages by giving $200 billion of additional financial backing to Fannie Mae andFreddie Mac, the two government-controlled mortgage finance companies."
What is this going to cost us? 75 Billion. Not bad considering what the stimulus bill/bank recovery was.
With the banks being propped up, this will hopefully help stave off another wave of foreclosures that are expected to happen in 2009-10. Lets hope this happens.
