Housing rescue: What you need to know

In brief: This idea would allow housing finance agencies, which are state chartered organizations created to help low- to moderate-income home buyers get mortgages, to issue tax-exempt bonds to help troubled home owners refinance their loans.

Under current regulations, these funds may only be used for purchasing homes.

The argument: Home owners struggling with high-cost mortgages could refinance into low-interest-rate loans through this program. Lenders would get their principals back and borrowers would lower their monthly payments.

Who supports this:Practically everybody, including the Republicans in Congress, as well as Democrats and the Bush administration, have come out in favor of this proposal.

Who is against it: The states have given this proposal a lukewarm reception. Many already sell as many of the bonds as they can, according to a spokesman for Frank, so increasing the loan limits would have little impact.

Taxpayer price tag: This plan should be self-sustaining, but the federal government will take a revenue hit because the bonds are tax-free.

More galleries