Smirky's program to leave nothing of value behind.
http://www.heraldtribune.com/article/20081112/znyt01/811123011&tc=yahooWASHINGTON — The Bush administration is backing away from proposals to have the government refinance a broad swath of homeowners who face foreclosure after taking out subprime mortgages and other high-risk loans over the last few years.
The clearest sign of retreat came on Tuesday, when administration officials announced a much more limited plan to help people who have become seriously delinquent on conventional loans guaranteed by Fannie Mae and Freddie Mac, the two government-controlled mortgage finance companies.
The plan announced on Tuesday could lead to lower monthly payments for several hundred thousand homeowners, according to officials. But it would have virtually no impact on the millions of people who took out expensive subprime loans and who are at the heart of the nation’s foreclosure crisis.
The plan fell well short of one championed by the chairwoman of the Federal Deposit Insurance Corporation, Sheila C. Bair. As recently as two weeks ago, Ms. Bair thought she was close to an agreement with the Treasury Department on a plan to spend as much as $50 billion to modify mortgages and keep people in their homes.
But people close to Ms. Bair said Treasury officials broke off the discussion early last week.