The BoA/Countrywide Bill

The Boston Globe (news section — not editorial) on the housing bailout:

The mortgage legislation would help lenders like Countrywide, which was acquired by Bank of America last week, by allowing them to transfer their distressed loans to the federal government, avoiding potentially huge losses if borrowers continue to default on their mortgages.

The bill also raises the size of loans that can be purchased by the government-backed mortgage companies Fannie Mae and Freddie Mac, funds a program for cities to buy foreclosed properties, and increases federal support for consumer credit counseling programs.

That’s all true. What it doesn’t mention is the effect of the program on the stability of Fannie and Freddie, both of which took major dives yesterday as the bill moved forward.  Ostensibly, the bill was designed to help homeowners. But what sort of help is it if Fannie and Freddie are unable to perform their jobs?