Rep. Mike Michaud represents Maine's 2nd District in the United States Congress.

As I traveled around Maine the last couple of weeks, I heard from many Mainers who were concerned about the downturn in the U.S. housing market. Across the country, from Maine to California, the current mortgage and credit troubles are affecting millions of people.

The Bush Administration's effort to help Americans in need took the form of a coalition of mortgage lenders, servicers, counselors, and investors called the Hope Now Alliance. Hope Now's stated goals are to "maximize the preservation of homeownership while minimizing foreclosures." They will "assist borrowers who have the willingness and wherewithal to remain in their homes, but need some help to do it." Their goal is to keep people in their homes and when that is not possible, prevent foreclosure.

Another program, called "Project Life Line," was created by the Treasury Department in another attempt to help those in dire need avoid foreclosure and stay in their homes. The plan includes freezing the foreclosure process for 30 days while the mortgage is renegotiated or refinanced.

Unfortunately, as has been reported recently, these efforts have not lived up to their billing. The Hope Now Alliance Hotline, for example, has gained a reputation for causing frustration and providing minimal help to homeowners trying to use their services. The New York Times recently reported that every day more than 4,500 people call Hope Now, but few of them appear to be getting the relief they need. This is not surprising to many observers since the Alliance is heavily dominated by the mortgage industry. The industry is unenthusiastic about changing loans to help borrowers if doing so hurts their bottom line.

Almost six months after Hope Now was created, the group is largely resisting calls for broad relief for homeowners. This is disappointing and it illustrates that we can't rely on the industry that got us into this mess to help get us out of it.

In recent days, some constructive news has emerged from the United States Senate. Leaders of both parties have tentatively agreed to move legislation forward that should begin to address the housing crisis.

Initial reports indicate that the legislation will consist of a combination of property tax relief, home-buying tax credits, an overhaul of the Federal Housing Administration, and money for local governments to purchase and rehabilitate foreclosed homes. The proposal also includes funding for increased counseling for people in trouble, help for veterans facing foreclosure upon their return from service, and opportunities for local housing authorities to use tax-exempt bonds in refinancing sub-prime loans. In addition, the proposal also provides tax rebates to those in the homebuilding industry who lost money in the previous four years - this is where the bulk of the cost of this current proposal comes from.

Upon its unveiling, Senator Chris Dodd, Chairman of the Senate Banking Committee, said that this proposal "is not a complete package, but it's a major step in the right direction." I tend to agree with him. Much of the relief provided for in the proposal would go to the struggling homebuilding industry. And while the proposal does provide some help to our local communities and counseling to those in need, it is by no means a silver bullet.

In the coming weeks the House of Representatives will be considering its own ideas on how to help those in most need hold onto their homes and get through this housing crisis. If we are in need of help or not, this is an issue that really affects us all and our economy as a whole. I am hopeful that the House and Senate can come to a consensus on a package that will be comprehensive enough to truly help those in most need.