[quote=DWCAP]Why would this put a floor under housing? The only way that would happen is if the real problem was that good credit risks couldnt get loans. This isnt the problem. Good credit risks, people with jobs, and real DP’s, and good credit histories, can get loans that historically speaking are retarded for the banks to be doing. But they are there, loaning away, at 4.5% again.

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The banks aren’t going to be holding this paper. Freddie and Fannie (and other govt entities) – that is we, the taxpayers – will be holding it.