$20 billion of the $75 billion that has been put aside for the Homeowner Stability Initiative, will be contributed by Fannie Mae and Freddie Mac to be used for subsidizing interest rates to lower monthly mortgage payments for the struggling homeowners. 

Back in September of 2008, the Federal Government took over these two mortgage finance companies and has been using them to aid in the mortgage crisis. Although these companies are also in trouble, part of the rescue package included raising their lines of credit with the federal government up to $200 billion for both Fannie Mae and Freddie Mac.  $5 billion will come from the Housing and Urban Development to provide incentives to spur loan modifications.   

By collecting funds from these financial institutions, the $350 billion that was left over from the financial bailout back in October of 2008, will be freed up to be used to give additional capital to the banks, stimulate lending and purchase toxic assets.