Further lending market reforms

Of all the mortgage reform programs being discussed, one in particular is gathering momentum in Congress. It's a bill that would potentially:

Provide $4 billion in grants that would allow local governments to purchase foreclosed homes.

Help fund $10 billion in tax-exempt bonds that states can sell to fund mortgage refinance programs. They're designed to get people out of bad subprime loans and into more stable financing.

Fund $100 million more in counseling programs designed to help borrowers facing foreclosure.

Give home builders a tax incentive that allows them to offset past profits with current losses in order to bolster their financial state.

Offer buyers of foreclosed or vacant homes a tax credit, possibly as much as $7,000.