This could be the break that all of America has been waiting for, an automatic one page refi to reduce mortgage payments. If you've been doing things the right way by paying on time and not missing your mortgage payments while watching the deadbeats get the breaks this could be your turn for a break.
There are millions of American's with rates much higher than market rates that can't refi due to lack of equity or income needed to qualify for a new vintage loan or because after all of the new vintage loan level adjustments to the rate and fee structure for being less than perfect it makes the current 4.5% rate into a 6% rate taking away any benefit.
Their solution is to quickly identify all of the borrowers who are making payments on time and send them a one page refi form, which instantly takes their rate to current market. There would be a few other borrower hurdles but not many. The savings to the home owning consumer would be about $45bb per year, more than the cost of the recent extension to unemployment benefits.
This rumor has a lot of credibility behind it -- all of a sudden copycat reports come out from two credible mortgage shops and GSE premium coupons (5.5% to 6.5%) took a beating this morning -- down 4 POINTS on average. This is because these would get crushed if an auto-refi program was announced.
This would be the break that home owners have been waiting for, for years.