Financial Times FT.com

Lifeline thrown to foundering borrowers

By Stacy-Marie Ishmael in New York and James Politi in Washington

Published: February 13 2008 19:41 | Last updated: February 13 2008 22:59

A key provision of the economic stimulus plan will allow for an increase in the limit on mortgages arranged through government-funded lenders such as Fannie Mae and Freddie Mac.

But while this will make it easier for people with strong credit histories and large mortgages to refinance their loans, it may do little to help homeowners with shakier records or stem a further wave of foreclosures.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this