Even though there is much debate surrounding the idea, it looks as though the Obama administration will be committing up to $35 billion to help the struggling state and local housing agencies to continue offering mortgages. The government has been inching their way into the housing market for quite some time now and this would really be establishing their presence in the effort to recover the market. Insiders are saying that this plan could be announced within the next few days. The money would go towards relieving pressure on government-operated housing finance agencies that are having trouble with their funding. It is incredibly difficult right now to provide mortgages to many because of the struggling market, and especially for those who have lost jobs or lost their homes. This plan could be potentially very harmful to taxpayers when the housing agencies fail to pay their debt obligations. In order to prevent this from happening, the Treasury plans to charge fees to agencies that want to sell new long-term bonds to the government based on their individual risk factors. It does not sound all that bad, but you have to remember where this money is coming from. Should federal funds really be going to this? Towards low to moderate income homeowners? Or should it be going towards commercial real estate or maybe even small businesses? We have so many troubled areas right now, and while the housing market is most certainly one of them, we have to consider where we need the money most in order to rebuild, not just to band-aid.