Sen. Chuck Schumer of New York wants the federal government to give $300 million to community groups that “help subprime borrowers.”

A certain number of the folks who find themselves in trouble with their mortgages today are genuine victims who are finding the terms of their mortgage were misrepresented at the time of the sale. But a certain number are just plain foolish, who didn’t read the fine print, or who didn’t realize that an adjustable-rate mortgage means that the rate can adjust upward and require bigger payments. And a certain number are opportunists whose luck ran out, who planned on “flipping” their houses for a big profit and who are shocked to learn that home values don’t automatically leap $50k to $100k per year. And another chunk are folks who figured they would figure out how to pay later, as their loans didn’t require documentation or proof of income.

All of these folks have the problem of buying more house than they can afford and owing more money than they can pay. One would suspect the last thing the government should be doing is bailing them out, or offering them new loans.

So far, Sen. Chris Dodd, chair of the Senate banking committee and presidential candidate, has resisted signing on to actually spending money on a bailout. He has, however, bought into a lot of the rhetoric portraying those who find themselves in over their heads as innocent victims.

Will Dodd “flip” himself? His office had no comment in response to Schumer’s legislation.

Next big question: Will Schumer manage to persuade his fellow New York Senator?