President Obama pledged up to $275 billion Wednesday to help the struggling U.S. housing market. The president gave details on the plan that will help distressed boomer homeowners, who account for almost 30 percent of all delinquincies and foreclosures, according to AARP.
Key strategies of the plan include:
- A $75 billion fund would subsidize homeowners struggling to pay their mortgages.
- housing finance companies Fannie Mae and Freddie Mac may invest a further $100 billion in mortgages to mop up more home loans and spur fresh lending.
- Washington may inject a further $100 billion into each of the mortgage giants, protecting them against losses as they expand their massive reach into the housing market.