Photo of the Day: HUD Secretary Shaun Donovan and Attorney General Eric Holder on February 9, 2012. (Gary Cameron/Courtesy Reuters)

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President Obama announced a $25 billion settlement (Reuters) between forty-nine states and the five largest mortgage lenders Thursday. The agreement requires the banks to reduce some loans and refinance mortgages for underwater borrowers. It also pays 750,000 Americans, who lost their homes to foreclosure between 2008 and 2011, approximately $2,000.

The deal comes as the country continues to struggle from a housing crisis that has been a drag on the U.S. economy and could help show Obama is willing to be tough on banks as he seeks reelection. The move also comes on the heels of Obama’s announcement last week to help homeowners with underwater mortgages (TheHill). Politico notes that the foreclosures issue is expected to affect his chances in five major swing states, Michigan, California, Florida, Ohio, and Nevada, all of which have some of the highest foreclosure rates in the country.

Last week before the state’s caucus, the Nevada Sun noted Republican candidates’ positions on the mortgage issue boiled down to the “‘free market,’ meaning no government-assisted mortgage modification.”

Egypt’s criminal prosecution of forty-three NGO workers (TIME), including nineteen Americans, has put $1.3 billion in annual U.S. aid to Egypt’s military in jeopardy. Martin Dempsey, chairman of the Joint Chiefs of Staff, is set to travel to Egypt later this week to push for the charges to be dropped. Republican candidate Newt Gingrich on Monday urged a tough stance against Egypt, including, but not limited to, stripping Egypt of the military aid.

–Contributing Editor Liriel Higa, Senior Editor Toni Johnson