4% Government Rates??

I heard today on NPR on the way into work that the Government is trying to hatch a plan to have a 4% interest rate on mortgages. WOW that would be great, but when is the government going to start this program... still needs to pass so now it is just hype. How is the government going to do this... haven't said this either.... The US Government does not set interest rates they are set by the open market by what investors are willing to pay for mortgage backed securities. The new story stated that the Government could sell 10 year treasuries at 3% and then have mortgage money available at 4% so the government would make money... But if private companies can't make money at those margins how would the government do it?

So before we all line up to get our 4% government loans lets get the programs passed through congress (if that happens) and the programs in place. When the office of the Housing and Urban Development received a passed bill increasing the Reverse Mortgage Limits it took 4 months to have the limits raised.