wait, isn’t anyone who qualifies eligible for a 30 year mortgage? What does he want to do, lower the standards? Give away free houses? eliminate the down payment or just force banks to give everyone, regardless of risk the lowest rates?
Here's a bad idea: Encourage homeowners to take back mortgages privately with some minor tax break. When default occurs--no problem--the homes are given away (wealth redistribution occurs), and the banks are unhurt. Presto! /S