“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.
