What the heck is a Housing Woe?

An article by Associated Press titled Obama to promote new steps to help housing woes reveals some reasons why the government is so adept at being ineffective. The housing industry could use some help, and the greatest help we need from government would be to stop doing harm. The President is going to order changes to the Homes Affordable Refinance Program that will do nothing to improve the status of the housing industry. As a matter of fact, it will probably create more obstacles.

The program will make it easier for some homeowners who are underwater to refinance their loans at a lower rate. It will only be available to persons who have government backed loans, and only if they are not behind on payments. My interpretation of the program is that it will put a little extra money in the pockets of people who don't have a particularly difficult time making their present payment. They will theoretically have more money to spend as they choose, and the general economy will benefit. Perhaps that will be true, but it does nothing for the housing industry.

Why is there no requirement that the money saved per month go toward accelerated principal reduction? If there were accelerated principal reduction, the owners would have the ability to sooner become residentially mobile, and able to buy another home if they choose. There would be an eventual boost in the number of home buyers and sellers.

Why is there no effort to increase the residential mobility of otherwise creditworthy homeowners who are underwater and want to change homes? Portable debt is not that unrealistic, and it would help the housing industry by empowering many thousands of aspiring move-up homebuyers. Maybe it's because it does not fit someone's vision of America's future as a nation of renters.