#rsrh What is Obama’s mortgage refinancing proposal?

Ed Morrissey essentially asks that question while commenting on Obama’s SotU pledge to bail out underwater mortgages:

There are a lot of holes in this plan, not the least of which is why homeowners who are current on payments more than three years after the collapse need government assistance.  They may be underwater on their mortgages, but if they are making their payments, then they are at no risk as long as they don’t need to sell.  Their monthly payments gradually will eliminate the negative equity in their asset.  Refinancing will speed that up slightly by lowering interest rates, but if these houses were bought during the bubble, the current interest rate is probably low from a historical perspective anyway.  And to fix the negative equity, those homeowners would have to forego saving the $3000 a year to plow it back into the principal anyway.

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