Nothing Down and Banana Republic Loans Make a Comeback back by Government Sponsored Entities!

Many that first saw the bill thought that there were sufficient guidelines in place and raising caps to $729,750 was simply a way to inject liquidity into the market; plus the ultimate stop would be the verification of incomes and also a down payment. Well now that is out the window and the government sponsored entities are following the fantastic model developed by Countrywide and New Century Financial...

Could it be that borrowers need super jumbo mortgages because we are still in a housing bubble? You would think that folks would have learned their lesson after being hit in the face with a subprime 2 x 4 but leave it to our government to go ahead and compound the stupidity... now Freddie and Fannie are taking a play out of Countrywide; lower down payments and also take lower credit scores...

We are living in a Twilight Zone episode in which the “solution” to our problem is the problem. This is utterly stupid and virtually guarantees a taxpayer bailout whether we want it or not.

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So we now have the Federal Reserve accepting crappy loans in exchange for U.S. Treasuries and we will now have Fannie and Freddie ripping loose and pushing the limit with the no money down party just in time for the summer selling season. And make no mistake about this, this is no money down. You can get 3 percent from your credit card and you’ve effectively gone zero down. Welcome to our financially irresponsible government. And you want to trust these yahoos with a $300 billion bailout?