Yes, as in the types of mortgages that people secure for home improvements and other projects. Just when you thought that the mortgage rescue plan couldn’t get atrocious enough the Obama Administration makes it worse:

The Obama administration unveiled an expansion of its $75 billion foreclosure prevention plan yesterday, providing new subsidies to mortgage lenders and investors.

Under the expanded plan, some homeowners could see their payments fall significantly and the interest rate on their second mortgage pushed down to 1 percent. The announcement comes nearly two months after the administration launched the housing program, called Making Home Affordable. While officials said some borrowers have already received help, the foreclosure rate is rising and it could be months before the program begins to have an impact.

The new efforts address, in part, criticisms from consumer advocates that the administration’s housing plan did not go far enough and that borrowers still face too many barriers to receiving help.

“Ensuring that responsible homeowners can afford to stay in their homes is critical to stabilizing the housing market, which is in turn critical to stabilizing our financial system overall. Every step we take forward is done with that imperative in mind,” Treasury Secretary Timothy F. Geithner said in a statement.

Um…what? In what way is “responsible homeowner” defined as someone who took out a second mortgage — not even the main mortgage — on their home’s equity when they couldn’t afford to pay it back? We should bailout someone who decided to take out a mortgage they couldn’t afford because they really wanted a new kitchen? Pathetic.

And yet, as Ed Morrissey points out, someone did warn of this months ago. Diana Olick of CNBC was brainstorming ways that the White House could make the mortgage bailout even more puke-worthy.

It’s not that I don’t get the reasoning. Sure, do all you can to help people pay their mortgage, like get rid of other debt. By why stop there? What about car loans? Student loans?? The second liens, in general, were used by borrowers to either buy more home than they could really afford or to use their homes as ATM machines. Yes, some people use home equity lines of credit to pay college tuition.

But I can’t tell you how many homeowners I’ve interviewed (and just take a look at David Faber’s documentary House of Cards to see more) who took out home equity lines to put in a pool or buy a fancy car or put an addition on the house that includes a fancy new kitchen with a Viking six-burner. And I’m supposed to pay for all that?

It’s one thing to suck up the bitter pill in order to save the greater housing market and keep families in their homes, but using taxpayer dollars to give homeowners a free ride on second liens is preposterous.

Actually, it appears to have been less brainstorming and more scooping.

Bailing out homeowners who took out first mortgages they couldn’t afford is bad enough. But throwing in second mortgage bailouts increases the outrage meter exponentially. One has to wonder where the bailouts will end.