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Monday, October 24, 2011

Obama's New Program -- The Return of the Sub Prime Mortgage

President Obama is going to announce today a modification of the current federal program to assist homeowners refinance their mortgages. The plan is expected to be this: for mortgages guaranteed by Fannie Mae and Freddie Mac, there will no longer be appraisals of the property in order to qualify for a new mortgage. In other words, those who owe substantially more than the current value of their home can still refinance with a federal guarantee. This kind of financing used to be called a sub prime mortgage. Now it is Obama's big idea for restoring the economy from the damage done by -- that's right -- sub prime mortgages.

Am I the only one who sees the irony here?

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