The New York Times

The mortgage rescue plan currently before Congress, which was designed to help only about 400,000 of the 2.6

million homeowners needing assistance at the time it was created, may fall far short of bailing out the thousands of

additional Americans each month who join the ranks of mortgage borrowers in need thanks to an increasingly

troubled economy, analysts say.

KEEP THIS IN MIND...

borrowers to refinance troubled adjustable-rate mortgages into 30-year fixed-rate loans backed by the

government. Lenders would lower each loan amount to 85 percent of its current value while borrowers would

pay a 1.5 percent annual mortgage insurance premium, and any gain in value would be shared when a home is

sold.

borrowers would have to demonstrate that they can’t afford their current mortgage payment but have the

financial wherewithal to make payments on a new loan with new terms.

and that a weak economy, rising unemployment and higher mortgage interest rates could derail the usefulness

of the program, which would be managed by the Federal Housing Administration and funded by the mortgage

insurance fees, a 3 percent lender fee, and a tax on Fannie Mae and Freddie Mac.

To read the full story, please click here:

http://www.nytimes.com/2008/06/29/washington/29housing.html?_r=1&th=&adxnnl=1&emc=th&adxnnlx=1214794471-1wPUSlKP4CUyMb8ECvTjAg&oref=slogin

Eisrael Gomez

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