I was reading on CNN that Senator Chris Dodd, the committee chair, is working to create a Home Ownership Preservation Corporation, which would purchase mortgage securities that are backed by at-risk, subprime loans from lenders and investors.

This corporation would give these lenders and investors a better price for the securities than they would get if the properties backing them were put through foreclosure.

According to what I read, the fund might require $20 billion to $25 billion in seed money from taxpayers and, after that, it should self-fund.

I think getting this through is going to be a lot harder than some people think.   Are taxpayers going to jump on the bandwagon?

You can read the whole article here: http://money.cnn.com/2008/01/31/real_estate/subprime_bailout_proposal/index.htm?postversion=2008013117