Mortgage Workout 2: Funding

FUNDING for this Program:

Congress will authorize Treasury to issue up to$700 billion annually in 30 year Treasury bonds, at prevailing rates, to implement this program.

These funds will be placed in a separate segregated Federal Reserve Board administered fund that cannot be invaded by Congress. These funds will be used to purchase mortgages funded by Freddie Mac/Fannie Mae.

Chairman of Fed to be responsible for disbursement and oversight of the program through FNMA/FHLMC so co-ordination with Monetary policy will be maximized.

Reporting to Congress on program status twice a year.