Can Feds save O.C. housing? Some leaders of Congress want to open the financial floodgates for home purchases and refinances.

"The proposal probably won't help people in or close to foreclosure," said Raphael Bostic, associate director of the Lusk Center for Real Estate at USC. "At this point, people facing foreclosure will not have credit quality and other characteristics that would allow them to obtain a conforming loan from Fannie or Freddie."