Moreover, there’s going to be a huge refi boom, as lenders shift their high risk loans to Fannie, Freddie, and FHA loans. The only sticking points are the documentation and the DTI requirements, but those can always be eased.
The only questions in my mind are (1) How will the debt markets respond and (2) do Fannie and Freddie shareholders get anything once those two orginanizations become insolvent and ultimately nationalized?
