The Homeowner Affordability and Stability Plan was announced by President Obama on February 18, 2009.  According to the National Association of Realtors there are three main elements of the plan. 

1. The opportunity to refinance for approx. 4-5 million homeowners who have loan to value ratios above 80% up to 105%.  Fannie Mae and Freddie Mac will refinance the mortgages with loans owned or guaranteed by GSEs (government sponsored enterprises).

2. A 3 year initiative to reduce the monthly payments of homeowners ”at risk of imminent default” to affordable levels using $75 billion from TARP and GSEs.  The plan will only be available for borrowers with mortgages at or below the GSE conforming loan limits.

3. Supporting low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac.  The Treasury Dept. is doubling, from $100 billion to $200 billion for each GSE, its pledge to invest money to make sure the GSEs maintain a positive net worth.  The additional $200 billion is from HERA, not from the financial stability program or TARP.