Mortgage industry executives are reacting with skepticism to a government bailout of imperiled homeowners proposed by Congressman Barney Frank, D-Mass.

Addressing a group of about 100 mortgage executives Friday morning in Newton, Frank outlined the details of his plan, dubbed the FHA Housing Stabilization and Homeownership Retention Act.

But those same executives were reluctant to fully embrace Frank’s plan.

Asked how well he thinks Frank’s proposal would work, Marlborough-based East/West Mortgage Co. Chief Executive Officer David Bernotas told Banker & Tradesman it would depend on how much further property values fall.

“People are already refinancing a higher loan amount than the home is worth,” Bernotas said. “Now you add a loan-to-value ratio of 85 percent Â… How well this will work will depend on how much further home values fall.”

Industry consultant and MMBA board member John Spillane, of Braintree, said he thinks Frank’s legislation “is a start.” He said most of the mortgage brokers and lend-ers attending the morning meeting didn’t contribute to the problem.

Those who bear the most blame “weren’t in this business 10 years ago, and probably aren’t in it today,” Spillane said.

Frank’s bill would allow the Federal Housing Administration to purchase up to $300 billion worth of failing loans on owner-occupied, one- to four-family primary resi-dences, on which the first mortgage was originated prior to Dec. 31, 2007.

Criticism has been leveled against the legislation by those who fear taxpayer money is being used to unjustly save select homeowners. A competing bill is currently being drafted in the Senate, but has stalled over disagreements on how to pay for $300 billion in mortgage guarantees.