This is opposite on the new congress is doing, which is to rein Freddie Mac, Fannie Mae, and FHA. The Feds goal is to privatized the secondary mortgage market.
Many people tapped their rising equity during the boom years, using their homes as ATMs to fuel spending. The California Housing Finance Agency had initially excluded people who used their home equity in such a manner from participating in its Keep Your Home initiative, which launched this year with federal funds reserved for the 2008 rescue of the financial system.
But California's high unemployment rate caused the agency to reconsider its policy, agency Executive Director Steven Spears said in a statement.
"In the two short months since the launch of these programs, we have collected information that has helped us identify areas of improvement to make the programs more effective, particularly given the continued high level of unemployment in California," he said.Read it all