Proposal to permanently end the current mortgage crisis by using the free market system aka “The RC Stabilization Act"

All Freddie Mac and Fanny Mae Mortgages originated between Jan 1, 2002 thru Dec. of 2007 that are interest only or arm loans will be placed into a separate category bundle.

1) Their original teaser rate will not change. It will last for the life of the note.
2) All these loans will be converted to 40 yr loans
3) All these loans will have a call feature at 30yrs by the US Government at current market value at the time of exercise of the call feature, but no greater than 100% of the balance of the loan on the note that is left.
4) At the end of 20 years the note may increase 1% point above the original teaser rate.
5)All of these loans will be fully assumable by any buyer based on the original loan requirements.
6) All the interest paid on these notes will be federal tax free to the note holder be it a private individual or any entity or any US Corp.
7) States that agree to making these notes state tax free by a simple majority of their legislator may participate in this program.
8) The interest on these note will also be state tax free to the holder of these notes.
9) All these notes can be bought and sold at any time by any Private individual or entity.
10) All these notes must be serviced by a note service co. on an approved list by the federal gov’t. no exception.
11) All participating states must approve their participation no longer than 45 days after this program is enacted by the federal gov’t.
12) All these Loans may be paid off at any time without any prepayment penalty.
13) The original sale of these notes must be done on an auction basis thru the top 40 stock and bond dealers on the US stock markets and by the top 40 US banks and The US Treasury in the US. Consequent trading may only be done thru all the same licensed and noted companies on the NYSE, NASD and US Chartered Banks . All Trades must be fully disclosed and reported to the NYSE, NASD within 20 minutes of a transaction.
14) The US gov’t must sell thru all the above entities at a minimum, increments of $25,000. Pieces of these bundles to private US Citizens, or individuals just like treasuries. No fee in excess of typical US Treasury fees may be charged to buyers at the initial auction of every bundle.
15) The US federal gov’t must guarantee the right by private individual public participation in the auction by individual US Citizens’ up to a 25 % priority on every bundle sold.
16)Existing note holders may hold on to their notes under all the above terms and must notify the payees of the change in the note rate back to its original rate within 30 days of the passing of the stabilization Act.
17) Existing note holders may transfer the ownership only under a sale thru the existing trading scenario as described above.
18) Mtortgage Service companies will manage, service and foreclose on properties that are in default should the mortgage payee still not be able to perform on the original teaser rate of each note. Starting 90 days after the Stabilization Act is implemented. The Mtge. Service Co.’s may appoint, and hire the necessary individuals to sell the properties as they always do. All mortgages on every property even in foreclosure can be assumed by any buyer under the original rates and terms and fees. A maximum transfer fee of 1% of the balance of mortgage will be allowed.
19) This proposal was originated in order to Stabilize the mortgage loan market. It is designed to encourage foreign and domestic investors to invest in mortgage backed securities by stopping all foreclosures in one move. All foreclosures will be halted for a 60 day time period to implement the above plan and notify all mortgage payees and all mortgage holders.