Era of Responsability
Fannie Mae and Freddie Mac will begin refinancing mortgages with loan-to-value ratios of as much as 125 percent as the Obama administration seeks to..
Fannie Mae and Freddie Mac will begin refinancing mortgages with loan-to-value ratios of as much as 125 percent as the Obama administration seeks to..
Health care legislation has been a focal point for national debate for more than a year. One way or another, the fate of legislation supported by President Obama will soon ... [Link]
M is for Managing Director:Crafty, elusiveKowtows to clients; but to juniors abusiveSleek and well-groomed, heSwans about like a divaSteal clients or credit?He attacks with a cleaverPompous, self-loathingHis wife and kids ... [Link]
You’ve got to hand it to President Barack Obama’s expected Fed picks - they have some strong consumer credentials. Peter A Diamond co-wrote a book with Peter Orszag, now OMB ... [Link]
My piece on bank reform will have to delay until Monday evening. I am still working on it. Tonight’s piece is on entitlements and pensions globally and locally. I ... [Link]
Chers lecteurs, mon temps et mon énergie sont comptés et j'ai envie de parler de trois sujets, mais ne peut dans l'immédiat en traiter qu'un. Quelles sont vos préférences? J'hésite ... [Link]
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July 2nd, 2009 at 5:05 am
This is just a covert means of bailing out low end housing prices — though, two things:
1) Refi at 125% of appraised should not lower many payments, at least not by much, and it doesn’t solve the fundamental inversion of owing more than something is worth, and the incentives to give up after cash flow gets crushed by some disaster.
2) The low end doesn’t need as much help now — we haven’t bottomed there yet, but the bottom is probably 10-15% below current prices.
I don’t think it will amount to that much aside from more losses for the GSEs.
July 2nd, 2009 at 8:27 am
Economically, I agree, it doesn’t amount to much. Just the principle of the whole thing, I find odd.