President Obama announced a program Friday to funnel $1.5 billion to states to assist unemployed, underwater and second-lien borrowers.

Under the program, the administration will direct $1.5 billion from the Troubled Asset Relief Program to housing finance agencies in five states that have suffered a 20% drop in average home prices. The states receiving the grants — California, Nevada, Florida, Arizona and Michigan — must develop programs for unemployed homeowners, underwater borrowers and second-lien mortgages. Obama announced the program at an event in Nevada.

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