Quote:
Originally Posted by TheMentat
How is this bailing out people who walked away from loans?  |
I think Sammy has his bailouts confused. The fed. gov't. IS bailing out plenty of folks, but this Fannie/Freddie takeover is a whole different matter. The deal Bush inked a few mos. ago was to have FHA expand their guidelines to let a lot of folks who are in trouble with loan-to-value and resetting ARM's with conventional or subprime loand refi into FHA. There are a ton of conditions on this, but I think that's what Sammy means. I guess the two do intersect in some way, however, in that some Fannie/Freddie loans that would otherwise go into default, will be rescued by FHA, which is much better insured anyway.