Bush's plan for aiding homeowners is less than it appears

Kevin G. Hall | McClatchy Newspapers

last updated: August 31, 2007 05:17:58 PM

WASHINGTON — President Bush on Friday unveiled his plan to address homeowners who face foreclosure in the nation's credit crunch and housing slump.

The plan was announced days before Congress returns from its August recess with housing issues high on its agenda. The proposals, however, duplicate efforts already under way by Congress and other federal agencies, would help at most 21 percent of the homeowners facing foreclosures and would do little to help areas in which inflated real estate prices are a problem.

Bush called on Democrats to approve a modernization of the Federal Housing Administration, which passed the House of Representatives last year with bipartisan support but was quashed by Senate Republicans.