There was an interesting follow up on the news this morning on this item. Apparently it is not intended as a bail out of the subprime borrowers. It appears that the federal government is willing to extend federally guaranteed mortgage loans to borrowers with strong credit histories who are in danger of foreclosure. The newscaster indicated that subprime borrowers are to be excluded from the program.

Bush clearly indicated that it is not the intent to bail out real estate speculators and individuals that purchased homes that they could not afford.

The question remains...if a borrower has a strong credit history...why would he need the help of the federal government to refinance with an insured loan.