Real estate exchange traded funds (ETFs) and the housing market need a helping hand.

The FDIC is breaking with the Bush Administration and is now proposing a $24 billion plan to help 1.5 million Americans stay in their homes.

The Federal Deposit Insurance Corp. is proposing the government funding to help 1.5 million Americans avoid foreclosure. The FDIC posted the plan on its Web site two days after Treasury Secretary Henry Paulson rejected the idea of using money from the $700 billion bailout of the financial industry to pay for such a proposal, reports Alan Zibel for Associated Press. The Treasury has declined to comment.

The agency’s plan would guarantee 2.2 million modified loans – mainly risky loans made to borrowers with weak credit or small down payments – through the end of next year. Borrowers would get reduced interest rates or longer loan terms to make their payments more affordable.

Freddie Mac (FRE) is asking for an initial injection of $13.8 billion from the government after posting third-quarter losses of $25.3 billion.