Hubbard is proposing with colleagues Christopher Mayer and Alan Boyce a national refinancing of mortgage debt for the estimated 37 million federally guaranteed loans Americans have with government mortgage issuers like Fannie Mae and Freddie Mac. The issuers would send borrowers an application to refinance at current low mortgage rates; the borrowers would have to be current or become so for at least three months; no down payment would be required; and the government would guarantee the new loans just as it chose in 2008 to guarantee the existing ones, meaning taxpayers would not be taking on any new risk.
A national refinancing effort could slow the number of foreclosures by making mortgage payments more manageable for borrowers who can stay in their homes if they get a few thousand dollars a year in interest savings. It might also stimulate consumer spending — Hubbard estimates $50 billion to $70 billion worth — as homeowners wouldn't feel quite so pinched. "A national refinancing would be like a large, permanent tax cut which would have a very big effect on the economy," says Hubbard, who has briefed the Obama Administration since he introduced the idea.
8) Please. Get involved.
9) Maybe Mother Nature is trying to tell us something.
10) Finally...this story appears to be serious.