I agree, but getting paid back is not a problem. so now the govt can return fnma to the shareholders.
than they will have to save for it, or get the money from mommy and daddy. Thats the way it use to work and it worked well. the idea of home ownership for everyone failed the test. What you have now is lenders who are afraid to foreclose, holding up the housing market and the cost being shifted to the taxpayer.
the devil you know is better than the devil you dont.
FNMA was a good system till barney frank came along
my simple answer is require home buyers to put 20% down payment. and return to the fnma model at a modest interest rate of 5%. Not a solution but a start.
This nothing down #$%$ never works.
nobody can sell mortgage backed bonds at current interest rates without a govt guarantee. Obama knows this. His proposals to change FNMA and not issue a govt guarantee are lame because nobody would be interested unless interest rates are much higher.