Mr. Campbell sends to Washington

One of the Gulf Coast's more successful businessmen is touting a plan — really just a simple rule change — that could have an impact worth billions of dollars and knock down the number of foreclosures.

Jerry Campbell, chief executive officer of HomeBanc, hit upon the idea after observing differing trends in similar mortgage markets. While government-backed mortgages (specifically VA and FHA loans) are being refinanced in high volumes, conventional mortgages set up through Freddie Mac and Fannie Mae are not.

With interest rates at steep lows, refinancing could save hundreds of dollars each month for qualifying individuals and mean the difference between a foreclosure and a performing loan. That, in turn, could save banks and jobs and maybe spur on a recovery.

The key difference between the two mortgage markets that's holding up refinancing for Freddie and Fannie borrowers is the requirement of an appraisal, which Campbell says is nearly impossible to get in a workable way today.

Relaxing appraisal requirements for Freddie and Fannie borrowers could also create billions in liquidity for Americans — a potentially significant stimulus.

The Review wrote about Campbell a year ago, as HomeBanc showed signs of success at the end of 2008. Since its charter in April 2007, HomeBanc has successfully grown its business during the recession, and 2010 looks equally bright, Campbell says.

He has sent a letter about his idea to Treasury Secretary Timothy Geithner, and contacted several other federal officials. But the response so far has been essentially the sound of crickets. Nothing.

If anyone in Washington is looking for a solution that does not involve adding billions to the national debt, Coffee Talk will let you know.