House Financial Services Committee Chairman, Barnety Frank says mortgage renegotiations are vital if the Treasury wants more bailout funds. Rep. Barney Frank told CNN News Monday that if the Treasury Department wants a second $350 billion installment of financial bailout money, it will have to come up with a foreclosure modification plan; one that must include “principal write-downs” — or reductions in the original amount of the home loans. “I have been insisting that they do a loan work-out plan, but I have not heard yet what they plan to do,” Frank said.

Frank blamed the housing crisis lack of foreclosure modification on President Bush as well, saying there was ample legal authority for the administration to take action. “I don’t think you need legislation,” Frank said. “There is plenty of legal authority to do loan modifications that could stem foreclosures. — Paulson and Bush won’t use it. There is no need to legislate that.”