Avatar Posted by Wieczorekjack 806 days ago - Average Rating: 5 with 1 vote(s) (http://knol.google.com)
Category: Politics | Tags: san diego real estate home mortgages
It seems that the decision makers running the Fannie Mae and Freddie Mac government refinance programs did not learn anything from the current, and continuing, housing bust. If bad loans got us into the current mess, why do Fannie and Freddie think that more bad loans will get us out? In a recent press release it was announced that the two government-owned agencies will now refinance loans up to 125% of the current home?s value! Does this spell trouble for the FHA home loans? All facts from the mortgage industry and government point to the fact that mortgage default rates take a huge spike upwards with high loan to value loans. I would venture to say that many of the mortgage debtors (in trust deed states) may not realize that by refinancing through this program, they will be going from a non-recourse loan to recourse refinancing, in many cases. My bet is that actions like this will give a false sense of recovery for awhile, only to have us fall further in the future, much like the stimulus money is currently doing. To view the full article, please visit: http://knol.google.com/k/bob-schwartz/new-home-mortgage-loan-troubles-did-we/3imm48dqye6u3/9#
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