2008-04-01 — marketwatch.com
In the vote, Republicans had been expected to easily be able to block progress until Democrats agreed to back away from a technical provision that would have allowed bankruptcy judges to lower interest rate and principal of a mortgage.
...
McConnell and Reid both said in short speeches on the Senate floor that the problems in the housing sector were urgent and it was time to end bickering.
Under the Frank bill, lenders would reduce the principal of the mortgages to take account the new lower value of the home. The borrower would get a fixed rate loan from the Federal Housing Authority. In return, the government would get a small stake in the home.
The program would be capped at $300 billion.
It's a good thing the program is capped. Those always prevent the government from going too far with reckless programs.
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