Mark-to-Model Datapoint of the Day

The gimlet-eyed SAR found this gem in a Bloomberg story from Friday:

Potential homeowners approved by [Fannie Mae’s] automated computer program will be able to borrow up to 97 percent of the value of the property, the company said…

The government-chartered company said it can handle the changes, reported earlier by the Wall Street Journal, because it’s changing the computer models it uses to assess whether it will accept specific loans.

Lemme get this straight: Fannie Mae can start offering automatic 97% LTV mortgages again, because it’s changed its computer models, and the new computer models say it’s OK? Well, I’m reassured. I mean , it’s not like disastrous computer models are what got us into this mess to begin with.

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