Friday, June 19, 2009

This Pump Will Fail

He's trying to pump up a balloon which popped, folks.

President Barack Obama’s program to help more homeowners refinance may be expanded to include borrowers who owe more than 105 percent of their homes’ values, Federal Housing Finance Agency Director James Lockhart said.

The Obama administration is considering allowing Fannie Mae and Freddie Mac to refinance loans with current loan-to-value ratios of 125 percent or higher, Lockhart said at a National Association of Real Estate Editors Association conference in Washington yesterday.

It ain't gonna work, and the sludge will splatter directly into the taxpayer's "pay IRS" account.

HT: Ticker

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