Plans to help U.S. homeowners under review

WASHINGTON, Oct. 30 (UPI) -- White House spokesman Tony Fratto said the Bush administration is reviewing plans to help struggling U.S. homeowners but hasn't chosen a specific plan.

"Any inference that we're nearing a decision on any (proposal) is simply wrong," Fratto said, The Washington Post reported Thursday.

"We have been reviewing a number of housing proposals."

Sources have said the U.S. Treasury and the Federal Deposit Insurance Corp. are nearing an agreement on a plan to guarantee partial repayment of renegotiated loans to lenders, which may cost between $40 billion and $50 billion.

With the Treasury still formulating programs under the $700 billion bailout, "everyone has their hand out now," one lobbyist told the Post.

Some have complained that homeowners have been left out, however.

"The key to our economic recovery is in addressing the root cause of this crisis -- the housing crisis," said Sen. Christopher J. Dodd, D-Conn., chairman of the Senate Banking Committee.

"Federal agencies and financial institutions must do more to modify the mortgages they hold in order to stop foreclosures and help families keep their homes," he said.