[ExSES]

TAXPAYERS to ultimately "pick up the tab"!

Please explain how the taxpayer picks up the tab.

Those ill conceived mortgages are resold to Fannie Mae/Freddie Mac and, if there ultimately are too many bad loans to cover from their reserves..., there WILL be a "Bail Out" similar to the Resolution Trust established to take care of the last such event in the 80s.

[Toddsterpatriot]

Those ill conceived mortgages are resold to Fannie Mae/Freddie Mac and, if there ultimately are too many bad loans to cover from their reserves

So when you said this:
This sort of scheme only works for the duration of the value bubble then..., the "homeowner" walks away leaving the TAXPAYERS to ultimately "pick up the tab"!

You were guessing. Because it hasn't happen before.

I don't suppose you know what these reserves are?