Bill Passes - Homeowners to Be Bailed Out

There's a lot not to like in this pork-laden bill, but section 110 is problematic:

GENERAL.—To the extent that the Federal property manager holds, owns, or controls mortgages, mortgage backed securities, and other assets ecured by residential real estate, including multifamily housing, the Federal property manager shall implement a plan that seeks to maximize assistance for homeowners and use its authority to encourage the servicers of the underlying mortgages, and considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures. (2) MODIFICATIONS.—In the case of a residential mortgage loan, modifications made under paragraph (1) may include—

(A) reduction in interest rates;
(B) reduction of loan principal; and
(C) other similar modifications.

I thought Paulson was worried about moral hazards, which is why he allowed shareholders of Fannie, Freddie, Bear Stearns, Lehman, AIG and Wachovia to lose huge amounts of money. But in this bill, the Federal government is going to restructure the mortgage of seemingly anyone who can't afford their existing mortgage. Personal responsibility? Not anymore.