Fannie Mae eases down payment rules

Will they take the down payment in used pop cans? Will past receipts from the recycling center be acceptable for income qualification? Time to jump back on the old gold bandwagon.
 
This is the first time in my recollection that first time buyers got a break on loan terms before we went through a recession. This could help the real estate market bigtime. Move up buyers need first timers to take over their existing homes a lot of the time and in this rather poor and rural area that I like to call home, bagholders are desperate for buyers...... that could make a big difference...... now if they could just bring back the no verification loans we would all be in boom times again!!
 
Given that it seems nothing has been learnt from the credit fiasco I would not be surprised to see all the supposed tightening in mortgage standards just be given a blind eye yet again. If Dodd et co have their way investors will not even have to take a risk as it will all be insured paper. Long Gold short USD all over again.
 
The management of FNM ought to be taken straight to federal prison. This is exactly why I detest these mixed public/private companies. If the management want to stick their head in the oven and turn on the gas, that's their business but don't put the taxpayers in there with them. Just as Cramer wrote this morning, these low/no downpayment situations are automatic defaults, particularly in a market that is still looking for a bottom.
 
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