Mike Stathis

Fannie Warns 'Walkaways' a Second Time

Freddie and Fannie want to "have their cake and eat it too." The mortgage industry was perfectly capable of enacting the proper controls on both ends (lender and homeowner), but they did not. Instead, they were too concerned with counting the cash flooding in. You cannot change the rules of the game after the players have entered. I would consider that deceitful business practices at best, and extortion at worst.

For FNM and FRE to come out and make these warnings, after their management fudged earnings in order to get their multimillion dollar bonuses - it's ridiculous!

Perhaps even more ridiculous is their "grave" warning, as if anyone who walks away from a mortgage will be in a position to buy a home within three years anyway! And if they are, a 680 FICO isn't particularly high.

Fannie and Freddie Get a Little Breathing Room

The reader comments above are right on track. They get what's going on.