There are two principal ways this concept can be funded. The first is to try to project how much will be needed and fund it on an ongoing basis. The second way is to fund it as required.rnrnIf the plan is to fund it on an ongoing basis (as it should be), wait until lenders hear the home appreciation rates which OMB is using with HECMs. Will the same u201cconservativeu201d rates be used here?rnrnIf it is funded as needed, not even the federal government should be sponsoring another form of a Ponzi scheme, i.e., later borrowers will be paying the losses of earlier borrowers.rnrnWhat is clear is that our government cannot support health care, foreign wars, home ownership, green initiatives, General Motors, AIG, Stimulus Packages, Cash for Clunkers, and everything else it is dreaming up without a significant associated cost. It is clear this Administration has all of the programs anyone can think of but fails to recognize they might cost something until it is well down the road to instituting them. Its style is: u201cFigure out what people want. Weu2019ll figure out how to pay for them (maybe) some time in the future.u201d rn

Bill,rnrnIt is what it is. rnrnOnce in a while politics comes into play when it comes especially to HECMs. Or does it? You be the judge.