This one appears to have as much chance for success as his previous plans — tiny!
The more the government intervenes in the housing market, the more it mucks up the workings of the free market and delays the market hitting bottom and beginning to turn around.
It is highly unlikely that Congress will go along with Obama’s plan to raise taxes to subsidize the refinancing of underwater mortgages.
The president said his plan would make it easier for homeowners to refinance their mortgages into current low interest rates, which are now below 4 percent. Borrowers, even those who owe more than their homes are worth, would be able to refinance into government-guaranteed Federal Housing Administration Loans.
To pay for the program, Obama will ask Congress for a tax on financial companies with more than $50 billion in assets. Congress has refused to act on similar requests twice in the last two years.