October 06, 2010
Fannie Mae CEO Mike Williams Announces New Housing Finance Program for Sub-prime Homeowner Wannabes
Calling it the
No Money Upside Down program, Fannie Mae CEO Mike Williams announced an innovative new program designed to help sub-prime homebuyers grab their share of the American Dream.
No Money Upside Down Program allows almost anyone to borrow up to 150% of a new home’s value. Borrowers with lousy credit, no discernible source of regular income and a history of defaulting on credit cards and installment loans are eligible, Williams told reporters.
“Today, millions of low income, no account Americans are suffering from the inability to participate in the American Dream of home ownership. Just because they have struggled to pay their bills in the past and have walked away from debt before, they should still have a shot to grab their fair share.
“This program lets them do just that,” he said.
“This program is exactly what he had in mind when we passed the banking regulation bill,” said reigning Banking Queen, Representative Barney Frank. Frank, who is in a surprisingly competitive race for reelection, was eager to offer support for the new program.
“This doesn’t have to be about improving the liquidity and health of the financial sector. This has to be about making sure people can borrow way more money than they can afford to pay back and buy the same kinds of houses that their rich neighbors buy."
(h/t @JosephAGallant for the image)