[quote=patientrenter]”With FHA income IS verified and the no appraisals are on refi’s only on certain loans. This is solely being done so nobody has to admit the loss, just pretend like all is well. (Mark to market would recognize the collapse immediately) HLS”
So it’s effectively a way to take bad loans off banks’ books at their full book value, without any write-off. This makes it yet another bailout. It’s hard to keep track of all the hoses pumping taxpayer dollars into housing and housing finance. It’s like an ICU patient with 40 needles and tubes stuck inside of them.[/quote]
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Exactly.
The people with the money make the rules, and their rules state that they will be made whole at our expense.
IMHO, it’s not so much about saving J6’s home equity, as it is about quickly transferring the unrealized losses to the govt. Once that is done, expect them to go back to mark-to-market, and the downslide will be allowed to continue.
I’ve always thought we wouldn’t get near a bottom until 2012 — and not go up for years after that. It looks like it might take even longer.
