With total demand increasing, the unemployment rate will decrease. and it will jolt the economy back to life, creating a sustainable economic recovery. The starting interest on the new mortgage would be 2.75%. The interest rate would increase .25% a year. The interest rate would stop increasing when the interest rate equaled the 30 year fixed rate mortgage rate, or 5%, whichever is the lowest interest rate. The person would qualify at the 5% interest rate. The mortgage would only be available for single family owner occupied homes. This procedure will encourage people to stay in their homes, and not add them to the foreclosure inventory. It will maintain the mortgage asset at its highest book value, as the economy balances itself. It will make Fannie Mae and Freddie Mac profitable again.
This is historical material “frozen in time”. The website is no longer updated and links to external websites and some internal pages may not work.
