I am writing to you in with the hope my message will be heard and possible solution taken into consideration.
I believe that the underlying issue regarding this financial crisis still exists: house foreclosures due to depressed values.
I realize that your office may not necessarily have the power to enforce the following, but may be able to put the idea on the table.
I would like to suggest the following remedy:
1. Perform an “across the board” refinancing of existing homeowners to 4% (or whatever rate you deem appropriate)
In doing so, you give the general public a back-door stimulus. A few extra dollars in the pockets of homeowners will
increase spending and consumer savings. This has the effect of shoring up banks, which in turn further frees up credit.
It also helps struggling businesses. The future earnings on the mortgages takes a small hit, but should be more than offset
by the lower default rates.
2. Keep the lowered mortgage rates in place for a period no later than 2 years
By keeping rates lower for a period of time for new homebuyers, you help spur buying interest. This will help to remove the
inventory of homes on the market. This makes the savings on buying a new home within this window a tremendous opportunity.
In removing the inventory, you help to raise property values. This will also help to prevent further foreclosures.
Of course, only credit-worthy individuals should receive these loans, otherwise, you simply perpetuate the issue.
I hope this email finds the you in a timely manner. I have sent this email to your offices with the hope it will be redirected for your attention.
Thank you for your time.