Refinancing has been the answer to any financial problem that might come up. A new car could be purchased with money taken out of a refinance. Mortgage payments could be made more affordable with a refinance. Many homeowners refinanced themselves into mortgages that they could no longer handle. With possible foreclosure not creeping up the government wants to step in and help - by refinancing.

It turns out that for many homeowners refinancing was a financial bear trap that has snapped closed. Brokers were eager to make loans that were hot and borrowers were so eager to get the money that they didn't slow down enough to understand what was going on.

Much of the media is working hard to lay all the blame directly at the feet of over zealous loan officers. And they do need some of the blame but that blame must be shared with the industry standard. Many of the loan officers didn't really understand the details of the loans themselves because they were not (and are not) financial people. They were simply selling a product that was a hot item.

The borrowers need to take some of the blame especially with the refinancing. People who had large amounts of equity were refinancing with questionable loan practices in order to finance investments, new cars or even vacations. When the rates shifted or balloon payments came due the borrowers cried foul.

Refinancing through the government may be okay for some people - ones that can pay back all they owe if given the right assistance understanding their finances and given the right amount of time. Forcing the lenders to lower the loan amounts just doesn't seem like the best solution. Maybe if the government stays out of if the industry can find a solution on its own.