White House Expanding Housing Aid Plan

The Bush administration is looking at ways to expand its aid to homeowners at risk for falling behind on their mortgages amid the stubborn housing and credit crisis that has gripped markets since last year, according to The Wall Street Journal.

The plan would help 100,000 homeowners reduce the amount they play monthly, the paper said, citing unnamed administration officials. Lenders and investors would be asked to write down the value of the mortgages and the federal government, through the Federal Housing Administration, would assume the risk of default, the paper said.

The burgeoning plans are a response to more aggressive proposals being floated by congressional Democrats. Rep. Barney Frank (D., Mass.) last month introduced legislation that would allow the Federal Housing Administration to insure and guarantee refinanced mortgages that have been significantly written down by mortgage holders and lenders. ...