A blog post by Jim Pethokoukis at the American Enterprise Institute appears to be generating much excitement on Twitter, although it is little more than a rumor at this point.

The article cites Jaret Seiberg of the Washington Research Group, who expects the President to appoint a "housing advocate" to the Federal Housing Finance Agency, the regulator and conservator of Fannie Mae and Freddie Mac, in much the same way he appointed Richard Cordray to the Consumer Financial Protection Bureau- by making the appointment during recess.

Seiberg believes that Obama will announce a mass refinancing program for agency-backed mortgages that goes well beyond the HARP program once he makes the appointment.

According to the article, the Obama administration could announce a program modeled on one that was originally devised by Columbia University economists Glenn Hubbard and Christopher Mayer. Under that plan, all homeowners with a Fannie or Freddie-backed mortgage can refinance with a new mortgage at a fixed rate of 4.2% or less if they have been current on their payments for at least three months. And the clincher is that the plan imposes no other qualification - no appraisal or income verification.

The typical borrower would reduce his or her principal and interest payments by about $350 dollars, a total reduction in mortgage payments of nearly $100 billion per year, according to Hubbard. It is expected to help refinance $3.7 trillion in mortgages and would come at an immediate fixed cost of $121 billion to the government.

"Talk about a political and economic game changer in this presidential election year. Obama could offer a trillion-dollar stimulus -- as measured over a decade -that would directly and immediately impact tens of millions of Americans suffering from the housing depression," the article said, which seems to have spawned the $1 trillion refinancing program rumor on twitter. Here's a look at the comments.

@Bergen Capital: "Rumors going around Obama proposing a huge(possibly 1 trillion) mortgage refinancing for troubled borrowers."

@DougKass "This report of an Administration's plan to prepare a massive refinancing of mortgages buoying housing stocks and mkt."

The White House was not available for immediate comment.

Shares of Bank of America(BAC_) were popping 7% to $6.21. Shares of Wells Fargo(WFC_) and JPMorgan Chase(JPM_) were also rising about 2% each. The three banks are the biggest mortgage originators in the country.

Wells Fargo is pegged to benefit the most from wave of refinancing and a rebound in housing as it has maintained its share in the mortgage origination business even as its larger rivals have reduced their share.

--Written by Shanthi Bharatwaj in New York