Steady Freddy... Fannie... Penny and the FHA

Implications: Current 'so called' mortgage metrics are not necessarially useful now or in the future. Ratios and numbers can always leave room for interpretaion and misdiagnosis.   Definately positive refi action is taking place for the strapped borrowers and principal committed investors; the GSE's should keep this effort going. However... If foreclosure mitigation and borrower forbearance refinancing are counts which are included in overall refinancing - well that can blurr the condition of the lending industry and the real estate market's overall recovery.

Analysis: Mortgage applications up, and similar metrics used for the trailing 50 years must be updated to present a clear and concise view of the current lending industry.

I believe the borrower must have more options available for refinance - perhaps forbearance eliminates their possible real estate appreciation for a few years, but allows them to stay in their homes. 

Allowing the borrower to break their existing mortgage contract, move the balance owed to another investor does help the borrower stay in their home, however this represents a higher risk for the new investor and I firmly believe that the investor (which may loose interest income) should no be required to suffer principal loss.

Borrower forbearance if properly administered should yield a positive result for all parties.