Obama Set To Launch Brand New Homeowner Bailout On Tuesday

Barack Obama Speaking To

, The White House is set to launch a new homeowner bailout on Tuesday, though the size and impact may be muted.

The idea is to help homeowners who are CURRENT but underwater on their mortgages by writing down the principal, which is a measure that must be taken for schemes like these to have any affect.

Banks that did this would be able to pass on risk to the FHA, which would fund failed loans via $14 billion left over from TARP.

The program was originally announced in March.

There’s been some talk of a huge “October Surprise” homeowner bailout, complete with massive levels of cramdowns and refinancing all backed up by the GSEs. This is vaguely along those lines, but not on the scale to make a huge impact.

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