FUNDING for this Program:
Congress will authorize Treasury to issue up to $700 billion annually in 30 year Treasury bonds, at prevailing rates, to implement this program. ( and use the unspent $300 Billion unused funds already voted in the TARP)
These funds will be placed in a separate segregated Federal Reserve Bank administered fund that cannot be invaded by anyone or used for any other purpose than mortgage refinancing. These funds will be used to purchase mortgages on PRIMARY RESIDENCES from homeowners at the value of the amount of principal outstanding on these mortgages.
Chairman of Fed to be responsible for disbursements and oversight of the program so co-ordination with Monetary policy will be maximized.
Reporting: to Congress on program status twice a year.