immediately outlaw exotic loans and legislate the requirement of banks to adjust all mortgages to a 15 or 30 year fixed (buyer's choice) at principal + (current prime + 1) on the price of the house that was purchased, if the house was purchased at least 2 months before the bill was first voted -
this means that anyone currently in a mortgage could perceivably have their house payment cut to 3% and recalculated retroactively - it's like...INSTA-EQUITY!
forclosures stagnation would conceivably be mitigated by allowing the buyers of a forclosure to buy the note with the 1 time fixed rate cut - which i think would cause a land grab by people with good credit and flush with money from the reacalculated payments and increased equity against which to back up their borrowing -
basically - let the people by the paper if The People are going to buy the paper - let's be practical about it, though - why markdown when you can put a rate on it easily?
voila - no money spent out of pocket and the banks that created the mess end up making money through the avoidance of loss of money -