From the WSJ today, here's what Fannie Mae is _going_ to do, vs. what the bailout bill would do:
"The plan is the latest twist in efforts to contain the surge in foreclosures on homes in much of the U.S. It differs from a bill approved by the House on Thursday that would authorize the Federal Housing Administration to insure loans for distressed borrowers only after the lender has written down the principal -- something many lenders are reluctant to do. Fannie's refinance plan would result in new loans of equivalent size, leaving the borrower underwater but giving him or her a lower monthly payment or at least a fixed rate."
Right. What a great idea this is. Yay, reduced and/or fixed rate. But refi on someone underwater and guarantee it through FHA which is essentially us as taxpayers. And this is _better_ than the bailout bill? Not.
ETA: To be fair, there's a cap.
"The program will allow refinancing loans of as much as 120% of the property value. Fannie officials project that 150,000 households could qualify for such refinancings." Unclear whether this applies to conforming, pseudo conforming, jumbo, wtf loans.