Refinance America: A New and Improved Plan

``Offer these borrowers an opportunity to reset their interest rate to a market rate plus some premium ( say .50%) by simply logging into a secure web based system and choosing rate reset option ... [then] subsidize reduced payments (average of $250 per month) for a period of time, say 2-5 years, depending on the vintage of the origination. Technology exists TODAY that can accomplish this in very short order. Yes, there is a cost to any subsidy, but it's a small investment compared with the huge write-downs that could occur with any sort of principal reduction or true modification / refinance alternative.'' -- Of course, even if able to take advantage of the new rates, some people will still need principal write-downs because they are so badly underwater.