So feign alittle stress and you will be fine. I am sure there will be a dozen loopholes and exceptions that any morgage broker worth ANYTHING could drive a mack truck through. All government programs never really exclude anyone, cept maybe the very wealthy, and they dont really care about morgages anyways.
This is political posturing. Fannie and Freddie cant get the new limits extended without paying lipservice to risk managment and speculation punishment. Just wait, in October when it becomes obvious that this recession really did hurt, that inflation is killing everyone but the top 20% and that housing will be falling for years to come the calls to extend the “temparary rates” will be played up as prudent financial planning in the media by some bleeding heart group and the particular government agency that they whore themselves to just before election time. “But think of the Children!” will be their ralling cry, as that never fails to make a few eyes get misty.
The morgage brokers and banks are already alittle disapointed by the outcome of the refi BOOM that was suppose to happen. Rates just havnt fallen enough yet. Maybe it is a month or two away, but I suspect the full doc portion is killing alot of people that need to refi and rates just are not worth it for those who don’t. This “almost contained subprime liquidity crisis” (snort, ya keep calling it that) just wont be over in time to meet the deadline at the end of this year. I kinda think this will end up like the Alternative Minimum Tax, limits adjusted yearly by congress to make it look like Washington cares.
Look, eventually the FED is gonna have to do something about inflation and that means raising rates. Everyone is all mesmorized by the threading of the needle the government is claiming they will do by lowering inflation by a slowing economy while simlutaniously boosting the economy with rebate checks to end any recession that might have constrained inflation. The day it becomes obvious that is hogwash rates will have to go up and if the artifical rate buydown isnt in place we will be right back where we started with even more debt and a bunch of waisted time.

So feign your stress, walk if it suites you, and feel comfortable in the knowledge that big brother has your back even if he has to act alittle tough in public.