Wow, this is very interesting. Over the past few weeks, all we’ve heard is that the lenders have cut back their business to focus on conforming loans only — those that could be sold to Fannie Mae. If Fannie cannot buy anymore loans, does this mean that the mortgage origination business is about to shut down altogether? No one will be able to get a mortgage?
I think that would be fantastic if that were to happen, but I fear that such an event would force Bush or someone to raise Fannie’s limits. It’s almost guaranteed that the taxpayers are going to be stuck fixing this mess in the end.
