[unique]

I cannot image going for a 125% loan to value. Our Federal Government must run a really more than passingly strange set of books.

[Frantzie]

This is guarantees more fraud, corruption, defaults, bailouts and on and on. It is Obama’s way to wipe out the middle class.

[thesharkboy]

Wow. This is a really deep hole we’re in. I’ve got an idea. Let’s keep digging.

[C19fan]

You got to be kidding me. Given the current state of the market where these loans will be written, FL, CA, NV, AZ, this is an basically an unsecured loan. This is a great opportunity for banks to dump loans from their portfolios into Fannie and Freddie loans. Of course this is guaranteed to happen:

Next year's headline: Fannie and Freddie Ask for Another $100 billion bailout.

[coconutt2000]

I’m trying to remember what this was called before Obama became President...

Oh yeah, “fraud”.

[Myrddin]

The aub-prime problem was fueled to failure with 105% loan to value. It will be in overdrive at 125%. Total insanity. The policy is aimed at complete destruction of the economy.

[Sleeping Freeper]

Barney Frank to the rescue.... we’re on a sinking ship folks...

[east1234]

If you have an ARM and the value has dropped 40% you would, or you'd end up foreclosed. I have a fixed second as a result of a recent divorce. Have been unable to refinance due to drop in value. Maybe I can do so now. I, and many others, are good for the money. Those who bought way above their means are the problem, they should be ineligible for these loans, but won't be.

[Onelifetogive]

Ok, here’s the deal...I want a 125% loan, then I want the government to immediately forgive part of the laon if I am “underwater”...

[Dick Bachert]