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.
Fann & Fred going on an unlimited credit binge on the full faith & credit of the US?
People will end up being cotton and artichoke pickers. Artichoke fields smell awful.