How can note holders be forced to allow refinancing without either taking their property or giving them more federal free money? Obama is on a new spending spree with our (soon to be) worthless dollars.
I wonder how many underwater loans are refis, where the homeowner stripped the equity out to spend the money on consumer items (cars,tvs,vacatrions, etc.). If this situation is allowed, then this is another free money scheme, and is pure evil.
The banks might like being able to unload the loans they hold in their portfolios, ie not Fannie, Freddie and Ginnie, with this refinance plan. All the risk is going to be shifted to the FHA. Of course it us taxpayers who are the ultimate guarantors. In a sense this is an indirect bail out of the banks. I am sure BofA would love to unload all the potential crap in their loan book from Countrywide.