New U.S. Home Loan Policy
No more amortized mortgage loans; amortized loans take away from individual buying power of homeowners. This would also revitalize the home sales market and the U.S. new-home construction business. This would help homeowners near or in foreclosure and keep them from being “under-water”. Interest payments would be divided evenly over the number of total payments. Banks neither create or make any products/wealth/durable goods or contribute to the gross domestic product (GDP) or provide recurring service (banks produce no goods and only limited service). Banks develop/arrange loans for mortgages using other people's money or corporations’ profits. Banks for too long have taken advantage of home owners by allowing amortized loans and the Federal Government should have done something sooner to overcome this inequity. Banks in recent times have only made things more difficult for the American home owner. Therefore it is time to eliminate amortized home loans. The Federal Government could float U.S. Saving T Bonds (Mortgage Bonds) to initially develop funds for home mortgages and money made on interest from mortgages to offset Social Security and/or Medicare. Again, with this 2nd new Government policy, the government would have a second program to offset the Social Security/Medicare deficit and put Americans back to work.