Mr Mortgage

Fannie and Freddie's Unbelievable Proposals

The reason why this is under serious consideration is because it is a way of moving underwater loans that will result in serious losses off the balance sheets of the banks and onto the balance sheets of the tax payer. They will never be able to securitize and well these so as they fall one by one for years the taxpayer will pick up the tab. With values down 40-70% in the bubble states where this is aimed, this will be a big tab.