Bloomberg.com: Stop me if you've heard this one before...: "Feb. 5 (Bloomberg) -- Fannie Mae, the mortgage-finance company under U.S. government control, will loosen rules for homeowners seeking to lower their loan payments by refinancing.

Fannie Mae will drop some credit-score requirements, reduce income-documentation standards and waive the need for appraisals in some cases, according to a notice yesterday to lenders posted on the Washington-based company’s Web site. The changes apply to loans that the company owns or guarantees.

The company, which accounts for more than 40 percent of the $12 trillion in U.S. residential mortgage debt, is seeking to break a “logjam” in refinancing and allow more homeowners to take advantage of near-record low interest rates..."
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Great. Just great. Let's get those people back in the housing market--the ones who have low credit scores, can't document their claimed income, and want to buy a house that's worth less than the mortgage. What could possibly go wrong with a clever arrangement like this?