Perhaps offering an early removal of PMI should be a consideration. Typically these charges are assessed on those in the most difficult situations and so far you(the government) have been far more concerned with protecting investors above the average citizen. When you invest you gamble and sometimes when you gamble you lose! Finding a way to keep more people in their homes-even if that means the investors do not make as much money as they had gambled on-will help shore up the economy and could help stabalize the falling home prices,thereby stopping falling local tax revenues, and keeping neighborhoods from deteriorating. People who are confident they will keep their homes are more likely to improve them and maintain them-further adding to spending and creating more tax revenue and jobs.