Housing and Recovery Act of 2008

Here is the summary according to the original document

1. Long-term affordability.

The program is built on the idea, expressed by Federal Reserve Chairman
Bernanke, that creating new equity for troubled homeowners is likely to be a
more effective way to avoid foreclosures. New loans will be based on a family's
ability to repay the loan, ensuring affordability and sustained homeownership.

2. No investor lor lender bailout.

Investors and/or lenders will have to take significant losses in order to benefit for the proceeds of the loans refinanced with government insurance. However, these losses would be less than the losses associated with foreclosure.

3. No windfall for borrowers.

Borrowers will share their new equity and future appreciation equally with the FHA. Borrowers will pay for the FHA insurance.

4. Voluntary participation.

This will be a voluntary program. No lenders, services, or investors will be compelled to participate.

5. Restore confidence, liquidity, and transparency.

Credit markets are fearful and frozen in part because banks and other financial
institutions do not know what their subprime mortgages and related securities
are worth. The uncertainty is forcing lenders to hoard capital and stop the lending necessary for economic growth. This program will help restore confidence and get markets flowing again.