Heeding the calls of voters, many of whom are struggling to pay their bills, President Obama unveiled his plan to help homeowners refinance their mortgages on Wednesday.  The plan would help qualified Americans, including some who owe more than their home is worth, reduce their payments by an average of $3000 a year.

Under the president’s proposal, the refinanced loans would be insured the Federal Housing Administration, all but guaranteeing another showdown between Obama and Congress.

From the Washington Post:

The president’s proposal is laden with election-year politics and faces a difficult path in Congress. Obama wants to pay for the estimated $5 billion to $10 billion cost with a fee on the nation’s largest banks, a proposal that has failed to win support even when Democrats controlled both the House and Senate.

In addition, its potential impact could be limited by the fact that it would not apply to borrowers who are behind on their home loan payments, those most threatened by foreclosure.

The president’s announcement comes less than 24 hours after voters in the Florida primary chose Mitt Romney as the GOP candidate they wanted to see go up against Obama in November, citing the struggling economy as the top issue for the 2012 election cycle.  Homeowners in Florida and Nevada, where the GOP caucus will be held on Saturday, have been some of the hardest hit economically according to a study by the Pew Research Center.

 

The proposal has already been met with skepticism by the congressional GOP leadership.

 

“We've done this at least four times where there's some new government program to help home owners who have trouble with their mortgages. None of these programs have worked. I don't know why anyone would think that this next idea is going to work,” said House Speaker John Boehner.                                     

 

There is no word when Congress will take up the proposal.