By writing down all underwater mortgages to market value, the nation's banks could pump$71 billionper year into the economy, create more than one million jobs annually, save families$6,500per year on mortgage payments, and fix the housing crisis once and for all, according to anew reportbyThe New Bottom Line, a nationwide campaign representing 1,000 faith-based and community organizations that seeks to hold Wall Street accountable and find solutions for struggling and middle-class families.

Grassroots organizations across the country aligned with The New Bottom Line campaign arecalling onState Attorneys General who are investigating the banks for foreclosure fraud to stand firm for a settlement agreement that (1) includes large-scale principle reduction for underwater borrowers; and (2) does not release the banks from claims beyond the robo-signing scandal.

"Homeowners across the nation are struggling to pay their boom-era mortgages with their recession-era salaries and the economy is suffering for it. Writing down the principals and interest rates on all underwater mortgages to market value would serve as the second stimulus that America so desperately needs, only without added costs to taxpayers," according to the report entitled"The Win/Win Solution: How Fixing the Housing Crisis Will Create One Million Jobs."

The plan would lower homeowners' mortgage payments by an average of more than$500per month or$6,500per year. Six billion dollars per month that is currently going to mortgage payments would instead go toward buying groceries, school supplies, and other household necessities.

As consumer demand picked up, businesses would start hiring again. For example, the plan would inject an annual stimulus of$20.5 billioninCaliforniaand 300,000 jobs per year;$1.64 billioninOhioand 24,000 jobs; and$12 billioninFloridaand almost 180,000 jobs.

Last year, the nation's top six banks paid out more than twice the cost of the plan ($71 billionper year) in bonuses and compensation alone ($146 billionin 2010). Currently, the nation's banks are sitting on a historically high level of cash reserves of$1.64 trillion.