Allow a one-time withdraw from a 401K/TSP to pay-off debt on primary resident

Allow a one-time withdraw from a 401K/TSP to pay-off debt on primary resident. This would be tax-free and penalty free withdraw. If you take this option, no re-financing on that residence for 5 years or you would need to re-pay the 401k/TSP. Benefits:
1. Increase disposable cash for families. The house payment is the largest monthly cost for a family.
2. Reduction of debt liability for families and reduced risk of loan defaults.
3. The house will still be an asset that a family can use to support retirement. Plus, no house payment would reduce the monetary need during retirement.
4. The reduced itemized deduction will allow for increased tax revenue in future years. For at least for 5 years.
5.Family can increase savings or spending with disposable cash. Would be a boost in economy.