![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
yeah, I _know_ you don't want a bailout
May. 10th, 2008 06:00 pmAnd good news for you! The House bill is probably going to die a sordid and slow death between Bush's threat to veto, and Bernanke and Paulsen doing waffle imitations on whether they support/fail to oppose it.
From the WSJ today, here's what Fannie Mae is _going_ to do, vs. what the bailout bill would do:
"The plan is the latest twist in efforts to contain the surge in foreclosures on homes in much of the U.S. It differs from a bill approved by the House on Thursday that would authorize the Federal Housing Administration to insure loans for distressed borrowers only after the lender has written down the principal -- something many lenders are reluctant to do. Fannie's refinance plan would result in new loans of equivalent size, leaving the borrower underwater but giving him or her a lower monthly payment or at least a fixed rate."
Right. What a great idea this is. Yay, reduced and/or fixed rate. But refi on someone underwater and guarantee it through FHA which is essentially us as taxpayers. And this is _better_ than the bailout bill? Not.
ETA: To be fair, there's a cap.
"The program will allow refinancing loans of as much as 120% of the property value. Fannie officials project that 150,000 households could qualify for such refinancings." Unclear whether this applies to conforming, pseudo conforming, jumbo, wtf loans.
From the WSJ today, here's what Fannie Mae is _going_ to do, vs. what the bailout bill would do:
"The plan is the latest twist in efforts to contain the surge in foreclosures on homes in much of the U.S. It differs from a bill approved by the House on Thursday that would authorize the Federal Housing Administration to insure loans for distressed borrowers only after the lender has written down the principal -- something many lenders are reluctant to do. Fannie's refinance plan would result in new loans of equivalent size, leaving the borrower underwater but giving him or her a lower monthly payment or at least a fixed rate."
Right. What a great idea this is. Yay, reduced and/or fixed rate. But refi on someone underwater and guarantee it through FHA which is essentially us as taxpayers. And this is _better_ than the bailout bill? Not.
ETA: To be fair, there's a cap.
"The program will allow refinancing loans of as much as 120% of the property value. Fannie officials project that 150,000 households could qualify for such refinancings." Unclear whether this applies to conforming, pseudo conforming, jumbo, wtf loans.