madasiwannabe

Paulson Tops Gross, Greenspan and Ackman in the Mortgage Battle

The more I thought about this article, the more I think we are not giving paulson enough credit. If FHA refi's 300B of the GSE's high risk portfolio, it would pull the heat off and the GSE's could start to recover. There's no direct capital investment in the GSE's and no value added to the share holders. Why do you think they are the GSE's putting incentives out there to get these mortgages converted? Most of the new mortgages last month were refi's so it sounds like it's already working. Question now is will the refi's end up defaulting. If they do, FHA might need a bailout, but I feel better knowing the bottom feeders in this article won't get fat on my tax dollars.