Fannie' Fake "Home Saver," a 41% Failure Rate
This Bloomberg article is scary.
Instead of writing down some loans when they go bad, Fannie is giving the homedebtors another loan to get them current on the first one. (Yeah, I don't know how that's legal/ethical/logical either.)
What the wishful thinkers in oversight are considering it is a "workaround" technique. Let's call it what it really is: an attempt to anchor in depreciating assets all those bagholders who would be better off walking away and leaving jingle mail.
Best of all? A large number of the housing bagholders either know the extra dough won't help, or don't give a rats, and don't use it to stay current on those first loans! Giving deadbeats another loan to pay off the delinquent sum on the first one fails an astonishing 41% of the time.
Ticktock, everyone. How long until Hanky P. puts the taxpayers into Fannie?