Is Refinancing Mortgages The Solution To Foreclosure Reduction?

We have a progressive economist advocating a solution to the crisis proposed by a conservative economist. The idea is to enable refinancing of mortgages with high rates of interest. ( Refinancing has been made harder by the use of higher standards for refinancing by Fannie Mae and Freddie Mac which hold most of the mortgages.) This is a reasonable idea that might help some who are in trouble. In my view, it won't do much to reduce foreclosures. Shaving a few dollars off of the monthly payment won't do much for the unemployed or those who have taken lower paying jobs. Those are the folks who are foreclosure risks. Principle reduction or large temporary reductions in payments is a better solution.