In an effort to stabilize the housing market, the Obama administration announced new plans making it easier for upwards of nine million people to rework or refinance their mortgages.

President Barack Obama said the plan “will give millions of families resigned to financial ruin a chance to rebuild… prevent the worst consequences of this crisis from wreaking even greater havoc on the economy. And by bringing down the foreclosure rate, it will help to shore up housing prices for everyone.”

As far as cost is concerned, they are looking at more than $275 billion because of two programs called Fannie Mae and Freddie Mac.  This plan includes three parts: one is to help stablize the housing market by targeting up to four million at-risk homeowners; another part is helping homeowners refinance; and the last part is geared towards driving down mortgage rates.

If you would like to read more on this issue you can find details at the Wall Street Journal.

Filed under: Pollitics by Jon