Securitization

Paying down our way into even more debt 

The Federal Housing Administration this week began its latest save-the-economy campaign with the new Short Refinancing program. What is interesting to note is that this campaign lived to breathe after multitudinous voices in the mortgage finance industry detailed what a bad idea it is. For the weeks running up to the program, just about every single financial firm with a research department sent out some note or another claiming how borrowers won’t qualify (Amherst), the GSEs don’t have the authority (KBW) and/or there is no way to prioritize what loans qualify (JPM).