H/T to a subscriber
This is about S 170 and HR 363. Refi at LV, not FMV, and appraisals are prohibited… Mortagee would presumably stay w/current servicer and lose existing rights, if any, re origination. New securities are rebundled for sale (PIMCO, Penny Mac, et al).
If this happens, it will happen under the radar via Super Committee, not transparent law-making.
No one is looking at this.
U.S. Democratic Senator Barbara Boxer said she found a Republican colleague to help push a bill requiring Fannie Mae and Freddie Mac to let homeowners refinance properties worth less than their existing mortgage.
Senator Johnny Isakson, of Georgia, agreed to back the proposal that is also supported by Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., Boxer told reporters today on a conference call.