FLASH - OFHEO Letter - PLEASE WRITE YOUR OWN!

Posted 2007-08-06 22:06
by Karl Denninger

Fannie apparently has petitioned OFHEO (their regulator) to allow them to buy more junk mortgage paper.

This must not be allowed, as it will only throw gasoline on the crap mortgage lending bonfire that has been created over the last several years.

I urge you to read this letter to the OFHEO and, if you agree, pen your own and fax it to them.

THEY MUST HEAR FROM THE PUBLIC, AND SOON, OR FANNIE MAY BE FREED TO "BAIL OUT" THESE LENDERS.

While this may SOUND like a good idea, IT IS NOT.

If this is allowed to happen it will further keep home prices from correcting and prevent affordability from returning to the market.

It will allow the banks and other lenders to continue the racket of forcing people to serially refinance, thereby insuring that THESE PEOPLE NEVER ACTUALLY OWN THEIR HOMES.

It will literally SCREW millions of Americans far worse than they have been screwed up until now, by digging them an even DEEPER perpetual debt hole from which they will NEVER climb.

While there will be pain if the housing market corrects, THERE WILL BE MUCH MORE IF IT DOES NOT AT THIS TIME AND THIS IS PERPETUATED FURTHER!

Tell OFHEO - NO MORE!

http://www.denninger.net/ofheo.pdf

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