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Originally Posted by OMG!WTF!
I get that but it is the status quo. This loan program is actually quite smart. It gives people a huge incentive to build equity in the first five years...the riskiest time for lenders. And after five years more people will have more equity which is the healthiest thing for the market in general. And if they don't take advantage of the potential savings they are no worse off than before. Yeah it's actually a great idea.
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At the cost of $700M to the taxpayers. And sorry, I'm not a huge investment guru, but isn't the whole "more equity" bit contingent on the housing market?