Agree that it is the only game in town as Ginnie Mae is the only thing with “Full faith and credit” of the US govt behind it.

Still not too much liquidity in the conventional market because TRUST has been destroyed. This is the real problem and TRUST will not come back anytime soon especially with so many nitwits on the right fomenting cynicism about absolutely everything. Funny, even if they get back in power, what will they be able to do? Cut cap gains taxes?

I can tell you one thing for sure, the HECM’s are going to cost a pretty penny and I would bet many of them are already underwater as values have dropped and we will no know the damage until these homeowners die.

These will end up being a disaster as the assumptions used to create this product are wrong.

Watch these and also watch the JUMBO Fha loans in CA for clues as to the impending FHA problems.

Current policy isn’t “letting the air out of the bubble slowly”. It’s completely derailing any meaningful change.

Keeping the same players in place, when they should have failed, supporting a financial sector which has become a grossly-bloated sector in our society, etc. It’s extremely harmful to our long-term growth.

It just seems like a no-brainer to me; short term pain for the sake of long term gain, rather than the inverse.

It is a lead balloon, and gravity will ultimately have its way.

So do we let everything crash and try to get the bloodletting over with as soon as possible? Do we go for “shock treatment”? Do we prick the balloon for the loudest popping sound possible?

Or do we try to let the air out of the bubble slowly, trying for a controlled, long-term bust managed by very aggressive Fed, stimulus, FHA lending and other policies to keep the readjustment from happening all at once?

I don’t know the best approach. But there’s no question they’re trying the latter, and so aggressively that I think they’re propping up too agressively, and in bizarre housing- and finance-focused fashion.