News out of FNM:
Fannie Mae and Freddie Mac will begin refinancing mortgages with loan-to-value ratios of as much as 125 percent as the Obama administration seeks to boost participation in its anti-foreclosure programs.
Housing and Urban Development Secretary Shaun Donovan is scheduled to make the announcement in a speech in Las Vegas today, said Brian Sullivan, a spokesman for the agency. The program currently allows the companies to refinance mortgages without additional credit protection with loan-to-value ratios as high as 105 percent, which is up from their legal limit of 80 percent.
Just a thought: Isn't this what got us here to begin with? This as Freddie had to get another $6.1B from Treasury.