Use the Freddie and Fannie model to rewrite mortgages of underwater homeowners. They need to be at 40 year terms and 2% interest because this will trim $200 per month per $100,000 refinanced. Housing has always been about the monthly payment whether you call it rent or a mortgage.
These newly rewritten loans will be converted into the bonds that Fannie and Freddie sell everyday. But the buyers will be the new homeowners that will have the extra cashflow from the refinanced home. Homeowners will get a 1.75% interest bond program for retirement in addition to social security. They will also finance future homeowners thru Freddie and Fannie. AMERICANS FUNDING A HOUSING PROGRAM FOR THEMSELVES. Just keep the banks out of this, no origination fees of any kind to the banks.