Freddie Mac renegotiates the terms of the loans

[Sapiens]

Essentially Footnote # 12 says that if Freddie Mac renegotiates the terms of the loan with someone who is delinquent then "voilla" that person is no longer delinquent. It seems to me that since about June of 2006 Freddie Mac is struggling to keep this ponzi scheme afloat.

http://globaleconomicanalysis.blogsp...otnote-12.html

[jk]

Re: Freddie Mac renegotiates the terms of the loans

i think there will be a lot of renegotiations that will prevent loans from being classified as non-performing or delinquent. you would think this would hit earnings, but financial corps have a lot of games they can play with reserves to at least ameliorate that impact.