One proposal would allow millions of homeowners with government-backed mortgages to refinance them at today’s lower interest rates, about 4 percent, according to two people briefed on the administration’s discussions who asked not to be identified because they were not allowed to talk about the information...
But refinancing could have far greater breadth, saving homeowners, by one estimate, $85 billion a year. Despite record low interest rates, many homeowners have been unable to refinance their loans either because they owe more than their houses are now worth or because their credit is tarnished.
This is something I suggested as soon as that bubble popped. Though I would have taken it further and lowered the principle on these homes that were clearly overvalued to begin with. By freeing up the mortgages that people were paying they will spend it on other things. The only ones who will be complaining are those who foolishly invested in mortgage backed securities and frankly I could give a good damn what they think.