Does Anyone feel like Bailing

[xoxoxoBruce]

Besides its $180 billion mortgage purchase commitment, Freddie Mac gave President Bush a promise to implement a 25-point program aimed at increasing minority homeownership. Some of the points were cutting-edge. For example, as part of an effort to remove the fear of financial loss from first-time minority home buyers, Freddie committed itself to “explor(e) the viability of equity assurance products to protect home values in economically distressed areas.”

Pressed for details on “equity assurance” by RealtyTimes, Freddie Mac vice president Craig S. Nickerson said the idea is still at an embryonic stage, but might involve limited guarantees or insurance coverage to protect buyers from the possibility of loss of their initial equity stakes should property values in their neighborhoods decline.

But they didn't do that.
Yes, ARMs have been around forever, but in order to judge the risk, you have to understand how they work and what the probably of risk is, to you.

[Devil's Advocate] Well then, these people shouldn't even be considering buying a home. if they aren't smart(educated) enough to understand what they are signing. [/DA]

Yes, but this was the target audience.
The people whose job it was the hustle these sales, on commission, cajoled, and often lied through their teeth, to people that couldn't fathom anything beyond, how much down/how much a month, RFN.
I'm sure LJ sees these people all the time. People that don't fully realize what they are getting into, and slick salespeople that take advantage of that.

Off track... these are the same people that, if Social Security were removed in favor of Personal Retirement Investments, would invest in AMWAY.