spellcheckman's Blog

This fix will help homeowners, home sellers, home buyers, bank lenders, institutionalized banks such as AIG, the auto industry, the entire mortgage industry, people about to be foreclosed, and the current glut of unsold homes.

And it is a simple one. 

Simply have Fannie and Freddie Mac, federal bailout benefactors, offer up Mortgage loans at 4.5% fixed for two years.  This would give people time

For current owners not in trouble it may save them $200-1,000 on their mortgage per month.
For lenders and institutionalized banks, they will collect millions in fees on the refinances by homeowners who can actually afford to refi.  They can then be sold as useful worthwhile securities to free up even more money.  Most fees can be rolled in based on LTV.
For home sellers, they will be able to expand their market.
Home buyers:  easier to qualify, plenty of homes to choose from
Auto industry, and the economy in general:  This(the mortgage industry) is what has artificially propped up the economy from 2002-2008.  Why not have it propped up with real money.
People about to be foreclosed, a very high percentage will be able to stay in their homes.
No additional stimulus package would be needed.  The money savings per month going into the economy would exponentially multiply itself as it did from 2002-2008.

The lenders at 4.5% wouldn't lose money on such a low rate.  For one, most or all of the money is government money, and secondly, mortgage loans are front loaded with interest.  Check out any amortization schedule.  Better than half of the people who own homes stay in them 7 years and move on.  Most of the payment for the 1st 10 years is loaded with interest.  Equity is built up on rising values.  

With the cost of the money for buying a house,(interest) exceeding the cost of the house and the land, coupled with a shrinking jobs economy unable to sustain price value of current houses in many markets, without offering mortgage relief to all, the country is headed for a  depression.

It doesn't apply to those who have paid off their house!