Help for distressed homeowners in the new bailout bill. It's pretty vague (like everything else in the bill!), but here it is:

19 REQUESTS.—Upon any request arising under existing in20 vestment contracts, the Secretary shall consent, where ap21 propriate, and considering net present value to the tax22 payer, to reasonable requests for loss mitigation measures, 23 including term extensions, rate reductions, principal write 24 downs, increases in the proportion of loans within a trust 27 O:\AYO\AYO08C32.xml S.L.C. 1 or other structure allowed to be modified, or removal of 2 other limitation on modifications.

10 (b) HOMEOWNER ASSISTANCE BY AGENCIES.—
11 (1) IN GENERAL.—To the extent that the Fed12
eral property manager holds, owns, or controls mort13
gages, mortgage backed securities, and other assets
14 secured by residential real estate, including multi15
family housing, the Federal property manager shall
16 implement a plan that seeks to maximize assistance
17 for homeowners and use its authority to encourage
18 the servicers of the underlying mortgages, and con19
sidering net present value to the taxpayer, to take
20 advantage of the HOPE for Homeowners Program
21 under section 257 of the National Housing Act or
22 other available programs to minimize foreclosures.
23 (2) MODIFICATIONS.—In the case of a residen24
tial mortgage loan, modifications made under para25
graph (1) may include—
29

1 (A) reduction in interest rates;
2 (B) reduction of loan principal; and
3 (C) other similar modifications.
4 (3) TENANT PROTECTIONS.—In the case of
5 mortgages on residential rental properties, modifica6
tions made under paragraph (1) shall ensure—
7 (A) the continuation of any existing Fed8
eral, State, and local rental subsidies and pro9
tections; and
10 (B) that modifications take into account
11 the need for operating funds to maintain decent
12 and safe conditions at the property.
13 (4) TIMING.—Each Federal property manager
14 shall develop and begin implementation of the plan
15 required by this subsection not later than 60 days
16 after the date of enactment of this Act.

4 (c) ACTIONS WITH RESPECT TO SERVICERS.—In any
5 case in which a Federal property manager is not the owner
6 of a residential mortgage loan, but holds an interest in
7 obligations or pools of obligations secured by residential
8 mortgage loans, the Federal property manager shall—
9 (1) encourage implementation by the loan
10 servicers of loan modifications developed under sub11
section (b); and
12 (2) assist in facilitating any such modifications,
13 to the extent possible.