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Fannie Mae's 120% Refinances

Posted on May 07, 2008

Just yesterday Fannie Mae mentioned in its Q1 2008 Earnings Release that, as part of its Keys to Recovery initiatives, it would offer a new refinancing option for up-to-date but 'underwater' borrowers with loans owned by Fannie Mae that will allow for refinancing up to 120 percent of a property's current value. That, so far, is all the information I have directly from Fannie Mae on this subject.Unfortunately it got Dean Baker worked up. I respect Dr. Baker a great deal--he was calling the housing bubble long before it was cool--but I think he's got the wrong end of this:This is a difficu...

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