blanket refinance legislation to be unveiled

Remember those rumors about a blanket refinance about two months ago?

You know, that government mortgage financiers Fannie Mae and Freddie Mac were set to forgive mortgage debt for millions of underwater homeowners so they could take advantage of the record low mortgage rates?

The same proposal that the Treasury essentially ruled out after investors began dumping mortgage bonds in anticipation they would sustain large losses if a refinancing wave were to come.