It's about time...
From yesterday's Associated Press, there comes a long overdue announement that the two big GSEs are "developing new types of loans to help distressed borrowers with high-risk mortgages keep their homes at a time of rising foreclosures."
That's great news! But I have a hard time understanding why it took so long. In fact, I'm curious why the GSEs haven't adopted or endorsed other programs already in the marketplace that could be extremely beneficial to struggling homeowners or marginal new borrowers? The Payment Assistance Program(TM) my company developed, for example, is a wonderful alternative to option ARMs or other higher-risk products. I met folks from Fannie Mae in Washington DC months ago to discuss the details. They were very welcoming, but they have not been very eager to embrace our program even though we address and overcome credit risk concerns. The silver lining is that they also have not "denied" our program. Perhaps we were, in some small way, a catalyst to their Johnny-come-lately announcement.
The full AP article can be found here: http://www.forbes.com/feeds/ap/2007/04/17/ap3621080.html
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