My earlier note misrepresented the new policy announced by Fannie Mae yesterday. They will NOT be allowing homeowners to get further underwater through refinancing as I wrote. Their new policy is to allow people who already owe more than the value of their home to refinance into a lower interest mortgage. This is exactly what we should want banks and other financial institutions to do. It effectively means taking some loss on the current loan in the hope that the homeowner will be able to meet the terms of a new loan.
Unlike many news organizations, the Prospect has remained staunchly committed to keeping our journalism free and accessible to all. We believe that independent journalism is crucial for a functioning democracy—but quality reporting comes at a cost. From Trump’s threat to the free press to Musk’s influence on our democracy, there is too much at stake in 2025 to stop now.
We’re behind on our goal to raise $75,000 to continue delivering the hard-hitting investigative journalism you’ve come to expect from us. Your support helps us maintain our independence and dig deeper into the stories that matter most.
We need you to make a year-end contribution today. Any amount helps secure our future and ensure we can continue holding power to account.
