[49para]

So $26B in holdings to insure $1.372T in outstanding mortgages, that seem pretty low but since the taxpayers will cover the rest, I guess it's fine to continue handing out subprime mortgages.

[acveilleux]

They don't insure the value of the mortgage, they insure the shortfall between what the lender recoup in foreclosure vs. the outstanding loan balance.

[mrtron]

I havent looked in detail lately - but I believe they issue bonds and the bond holders would be covering the impact of a market crash.

You would prefer if there was not such an insurance system required for home owners putting less than 20% down?

[skylan_q]

You would prefer if there was not such an insurance system required for home owners putting less than 20% down?

I know I would. It would be like the 90's again where banks had to only loan out to people who they thought wouldn't default.