President Obama has unveiled a $275 billion program to address the national housing crisis. Speaking in Phoenix, Arizona, Obama said the Homeowner Affordability and Stability Plan could help as many as nine million homeowners avoid foreclosure and reduce mortgage payments.

President Obama: “This plan will not save every home. But it will give millions of families resigned to financial ruin a chance to rebuild. It will prevent the worst consequences of this crisis from wreaking even greater havoc on the economy. And by bringing down the foreclosure rate, it will help to shore up housing prices for everyone.”

$75 billion would be allotted to help up to four million struggling homeowners by creating incentives for lenders to renegotiate the terms of subprime loans. The plan also promises to help an additional five million households struggling to pay off their mortgages by lifting restrictions on refinancing and by pledging an additional $200 billion dollars for the mortgage giants Fannie Mae and Freddie Mac.