Mortgage Rescue II

The 7/2 Wall Street Journal says that our Feds are raising the limits on borrowers. The first program said the refinanced loans couldn't be more than 105% of the new value of the homes. Now these fine folk have said they would consider refinancing the loans they have already made even if (shock) the loan was now 125% of the value of the home. These are loans which the feds already made to borrowers who previously "qualified," living in homes which previously "appraised." Now the feds are thinking they might lower the interest rates if their borrowers can survive the refinance torture chamber and only if they "qualify." The final paragraph says, "Some analysts and regulators who oversee Fannie and Freddie say expanding the program could decrease credit risks to the government-controlled mortgage companies because they already own or guarantee these mortgages; a refinancing to lower monthly payments could make those borrowers less likely to default."
Of course borrowers are less likely to default. Just get on with it and lower all the rates.