Dragoon68 said:"Like you and I" is the key, my friend!
All they are doing is adjusting the terms of the loan for those who can prove that it will be beneficial and that they are able to pay under the new conditions. I'm assuming this is mostly the underemployed who were impacted by all the layoffs. They still must pay for the house like you and I. The bill incents bankers to make these adjustments. (see page 3). Not the homeowner.
If you are one who has been paying for your home and once the credit gets freed up (or now if you have a high FICA), you too can go in and refinance your loan and receive better rates also but you don't need government backing if you are in that category. Right now they are giving out 5% and if you want, go refinance and you can have that.
I keep hearing folks saying the Government "will pay for your house", that is an extremely false statement. I read this thing several times and I do not see where the government is paying for anyone's home or giving out free houses. They will have a mortgage to pay like you and I.