Housing bailout bill, The rich get richer

last updated 8 January 2015

Housing bailout bill

Congress this week passed a massive mortgage-bailout bill that will offer $300 billion in relief to homeowners and lenders. The bill gives qualified homeowners facing foreclosure an opportunity to refinance into 30-year government-guaranteed mortgages. It also authorizes the Treasury to make loans to the troubled government-chartered mortgage lenders Fannie Mae and Freddie Mac, and buy an unspecified amount of stock in both companies. The bailout of Fannie and Freddie could cost taxpayers as much as $25 billion.