Federal Reserve Chairman Ben Bernanke said yesterday that more must be done to help homeowners -- and that help needs to include the government and banks stepping up to the plate. The Federal Reserve notes this is due to the fact that "credit conditions have tightened and asset values have declined, contributing substantially, in turn, to the weakening of economic activity."

"Despite good-faith efforts by both the private and public sectors, the foreclosure rate remains too high, with adverse consequences for both those directly involved and for the broader economy," Mr. Bernanke said in a speech in Washington. "More needs to be done."

Part of his speech included a proposal from the FDIC -- dealing with the affordability and monthly payments. The plan called for a restructuring of delinquent mortgages -- with the government stepping in the share any losses this could bring lenders and servicers.

Another program dealt with, in part, refinancing mortgages into FHA loans. Bernanke concluded by saying, "Steps that stabilize the housing market will help stabilize the economy as well."