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FNM - 125% LTV: More Quality Underwriting

|Includes: FMCC, Fannie Mae (FNMA)

 

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.