I do think you are misreading the downpayment bit. What it looks like they're saying is that if you didn't put a downpayment on the home originally you are not eligible for this plan. Which actually makes me feel better, because most of the stupidest loans probably didn't have a downpayment so maybe that will limit the scope greately.

(found you via Malkin BTW)

Can prove their creditworthiness at the time of the original loan (no falsifications and provided a down payment).

A question or two, Senator, if I may? If these homeowners are already having problems making their house payments now, how, exactly, are they going to come up with a down payment? If they can come up with a few thousand dollars, then obviously they’ve been holding it back and not using it to pay their mortgage either because they’re running a game on their mortgage property or they’re holding that money back for a catastrophic emergency. If they can’t come up with the cash, then they can’t be part of the program."

I think you may have misread here. I think this is referring to people who purchased a first primary home and who had good credit at the time of the original loan (being able to prove that they had good credit and that they paid a down payment on that loan).

But this would pose another question. What of those responsible homeowners who didn't buy more than they could afford and had good credit but got a questionable loan for their first primary home because they did not have money for a down payment? In other words, what also about people like me?

I agree with you on the main point you're making. Government has no business getting into the various businesses (insurance, mortgages, etc.) these past few weeks.

This is not where I want my tax money to go.