Fannie Mae-No Politics (FNMA)

[Cash47873]

All the reports say that principle reduction is less expensive than foreclosure costs. And for good reason. It costs on average of $30k per home for the bank to deal with the REO.

Factor in the fact that the banks have been working with the gov to kickstart this economy by NOT dumping all of that REO into an ascending housing market and recovery.

Banks and gov should prevail as per my recent post as having shirked blame and responsibility in favor of how public will receive thm based on the next move.

The gov gets to say, we misunderstood sorry.

The banks get to say we were bad but here is some money go out and do something with it. Then they will start to unload REO at higher rates while limiting downside on existing loans with forbearance and principle reduction.