Sweeping mortgage bailout unlikely

The L.A. Times reports:

Borrowers, don't hold your breath for a bailout.

As mortgage delinquencies soar, many consumer advocates and political leaders are calling on government to help what may ultimately be millions of homeowners facing foreclosure.

But the modest federal and state aid proposals advanced so far suggest that most people struggling with onerous loan payments are unlikely to get government assistance.

The Bush administration has ruled out a blanket program to help homeowners stave off foreclosure, reasoning that it's "not an appropriate role for the federal government," White House spokesman Tony Fratto said.

And at the state level, "there is only a limited amount we can do for people who are affected right now," said Assemblyman Ted Lieu (D-Torrance), chairman of the Assembly Banking Committee.

By one estimate, as many as 460,000 people in California — and 2.4 million nationwide — could lose their homes because they are unable to make payments on high-cost sub-prime loans or to refinance them to more favorable terms.

You haven't heard the last of this subject.