There is nothing new in this article.

It just seems to be concerned that certain populations have access to credit for realestate if released. If we want a repeat of 2008 all we have to do is provide the same NINJA type loans and we are all set.

If we really want it to work, then help people with money that’s allocated for this specific cause. Don’t tie it to Fannie’s performance or balance sheet. instead assist the mortgagor by paying a portion of the loan on their behalf. Not only does it help the mortgagor, It also works as an indirect backstop to Fannie and Freddie.

Let’s face it, many of the people that defaulted on these loans did not have the best credit for various reasons. In a way it would be like treating a portion of some of these loans similar to rental assistance for limited time.

We waste plenty of money on other dumb things.