Fannie Is Poised to Scrap Policy Over Down Payments

[Anonymous_IHB]

This almost makes sense to me. Seemed weird reading that places where prices were already freefalling had higher down payment requirements than markets that were cresting/just crested the top of the price rollercoaster (and so, have the whole downward slope to traverse). Doesn't make sense to increase downpayments with falling prices, if the cause transends locales due to overall financing excesses. Maybe the higher downpayments with falling prices was a left over policy from the old days (ex. all markets are local, falling markets must have employment problems or something) that is now gone - the logical thing to do would be to estimate how much prices should fall, then add a few percent to that and charge that for a downpayment (ie. play prudent bank), or to just say lets lend to everyone it's about economic stimulus not about avoiding losses (ie. we are a govt entity, so let's lend it all out like the Fed).



Fannie Is Poised to Scrap Policy Over Down Payments

http://online.wsj.com/article/SB121089649942297163.html



Fannie Mae is expected to announce Friday that it is scrapping a policy requiring higher down payments on home mortgages in areas where house prices are falling.

 

[no_vaseline_IHB]

<a href="http://online.wsj.com/article/SB121089649942297163.html ">http://online.wsj.com/article/SB121089649942297163.html </a>



Anon:



PLEASE PLEASE PLEASE PLEASE with sugar on top start linking your cites. It's the button on top between the @ and Close Tags that looks like <a>.

 

[IrvineRenter_IHB]

<em>"By softening the down-payment policies, Fannie and Freddie are taking more risks."</em>



No kidding. This will help facilitate the downfall of the GSEs further exacerbating the credit crunch.

 

[green_cactus_IHB]

[quote author="no_vaseline" date=1210940998]<a href="http://online.wsj.com/article/SB121089649942297163.html ">http://online.wsj.com/article/SB121089649942297163.html </a>



Anon:



PLEASE PLEASE PLEASE PLEASE with sugar on top start linking your cites. It's the button on top between the @ and Close Tags that looks like <a>.</blockquote>


Sorry, slightly off topic but couldn't resist. To live with the laziness of others add this Firefox Add-On:



<a href="https://addons.mozilla.org/en-US/firefox/addon/190">Linkification 1.3.3</a>



It converts any link-looking text string into a valid hyperlink. If you are not using Firefox, you are a hopeless case ...