The effects of aiding struggling homeowners

After President Barack Obama announced new plans to help underwater homeowners remain current on their monthly payments, policymakers started debating the program and battle lines were drawn. Senator bob Menendez and Representative Scott Garrett, both from New Jersey, illustrated this division among officials.

NorthJersey.com reported Democrat Menendez said Obama's plan is a good idea and should have been implemented earlier, while Republican Garrett has joined forces with fellow party members in developing an initiative to eliminate the government's presence in the mortgage lending market, primarily through the dissolution of government-sponsored entities Fannie Mae and Freddie Mac.

The news source reported Garrett is also fighting to block a proposed mortgage amendment sponsored by Menendez that could increase the size of mortgages that would be eligible for government backing to a maximum of $729,750 after it had been dropped to $625,000 in October.

While homeowners are struggling and lawmakers are debating ways to save the housing market, top executives at Fannie Mae and Freddie Mac are receiving seven-figure bonuses, despite the government-sponsored lenders' recent legal and financial troubles.

Politico reported the Federal Housing Finance Agency recently approved $12.79 million in bonuses for 10 executives from Fannie Mae and Freddie Mac in 2010 for meeting modest performance targets that were enabled by modifying mortgages in jeopardy of foreclosure.

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