The American Banker has a great overview of the forthcoming refinance plan from the Obama administration. The idea is fairly simple and probably should have been tried two years ago: Help underwater homeowners stay in their homes by allowing them to refinance to the current interest rate. The plan, which is far from perfect would essential replace the ineffective HARP program that has been done very little to stabilize the market.
The goal is simple; keep people in their homes and slow down the flood of distressed properties that are inundating the housing market. The program faces quite a few roadblocks before it would go into effect and some are questioning whether it will be any more effective than HARP. Still, it seems like an option that is worth exploring.