Would be nice, though how can the government do that?
That's my thoughts exactly. - because of contract law - Perhaps with HUD/VA/FDA and Fannie mae held loans - but its been a while and I don't recall but I think that even those loans are later sold to investors.
I had a similar thought - during the great recession - with the high interest/ARM's that Mortgage brokers pushed or directed people (even with 740+ FICOs minorities or first generation home owners).
That those who wanted to keep their houses ( not the NINJA loans for investors/flippers ) to convert those loans to 5% Fixed rate and re-amortize the balance to a 30yr fixed (not the junk fees or late fees etc).
Think the Inland empire of So. California - but that said a lot of investor ended up with cheap properties and people lost homes and more through foreclosures from unethical brokers.