It's simple:

• Anyone who already has a mortgage automatically qualifies

• One package available: 30-year fixed

• Below-market interest rate, but high enough to be budget-neutral when balanced with the long-term T-bills that would finance the program

• And the kicker: FULL RECOURSE. I.e., if the borrower defaults the federal government has options beyond foreclosure that allow it to recover the full principal of the loan.

This plan would increase middle-class cash flow significantly and for the long term; it would stem the tide of foreclosures and soften if not end the housing-price crash; and it would only be available to people who were serious about making good on their loans.

See this article for the full idea:

http://www.weeklystandard.com/Content/Public/Articles/000/000/015/843uapwv.asp?pg=1