The Obama Administration has announced a foreclosure prevention plan aimed at helping 7 million to 9 million homeowners keep their houses at a potential cost to the federal government of $275 billion.rnThe key elements of the plan are liberalized refinancing terms for owners with mortgages held or guaranteed by Fannie Mae and Freddie Mac; a doubling of the size of the Treasury Department's commitment to maintain the solvency of the two government-sponsored enterprises (GSEs), from $200 billion to $400 billion; and a $75 billion loan modification plan for homeowners burdened with unaffordable mortgage payments. (For reaction to the plan, see p. 147.)
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