Pimco's co-chief investment officer Bill Gross is reportedly advocating a massive refinancing program to slash monthly mortgage payments, to boost consumer spending by $50 billion to $60 billion and boost home prices by five percent to 10 percent.

Gross, speaking at a Treasury forum on the future of housing finance giants Fannie Mae and Freddie Mac, said, "Policymakers should quickly re-engineer a refinancing opportunity for all mortgagees that are current on payments and are included in GSE-securitized mortgages," reports Reuters' David Lawder.

Afterwards, Gross reportedly said he didn't think the Obama administration, which calls for modifying failing mortgages to lower payments for struggling homeowners, would take up his proposal and added that he "actually shouldn't have brought it up" because the forum's focus was on options for a new housing finance system. 

Edited by: Hung Tran


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE