Mortgage loophole found in housing bill

The new federal housing rescue bill contains a loophole that will help troubled borrowers keep their homes, cut their loan balances and refinance at a cheaper rate, and pocket all of the profits if the market rebounds. To qualify, borrowers must be in financial trouble, have taken out a mortgage before Jan. 1 and have mortgage payments that exceed 31 percent of gross income. The law goes into affect on Oct. 1.