Mortgage Market Outlook - Creditsights

--FDIC forecasts the number of delinquencies of non-GSE borrowers will triple to 1.4 to 4.4 million in 2009 --Growing evidence suggests principal reduction or at least rate reduceiton is more effective to halt forecloures --Government efforst has been muddled and not halted foreclosues --New version bill was proposed Jan 2009: extend maturity to 40 years and allow judges to reduce principal (secured loan against apprised value and reminder unsecured loand, the same practice used in car bankruptcy chapter 13)