Paul Jackson, of Housing Wire, wrote an interesting post about the Refinance Initiatives proposed in the Obama Housing Plan released last week. In it he said:
“But Lockhart also made it clear that borrowers originally below the 80 percent threshold, but now above that limit, would not be required to obtain mortgage insurance – although he said that “the initiative does not preclude mortgage insurance from being obtained.”
If a brouhaha had been brewing, Lockhart’s letter clearly seemed to placate at least some concern among MI providers. MICA president Kevin Schnieder said Friday a statement that MICA members appreciated what he characterized as an “important clarification” of the homeowner assistance program.
The question of how the GSEs can manage a refinancing transaction above 80 percent and through to 105 percent without the need for credit enhancement, however, appears to remain an unresolved issue.
“Do you think they tried this fluffy FHFA solution because there are so many other issues around the charter right now?” asked one source, an ABS/MBS analyst that asked to remain anonymous. “I think the manly thing to do is to give Congress the language and tell them to get it done pronto.”
Did they just say Congress needs to “Man Up” and change the Charter for the GSEs??? WOW!
The detailed plans are due to be released on March 4th – I’m grabbing the popcorn and getting ready for this, it could be F-U-N!
Can you imagine the outrage of allowing refinances without an appraisal? Is that where we’re headed???
The Devil’s gonna’ be in the detials, but either way, CONGRESS is going to have some more TOUGH decisions to make!