I got an email press release the other day trumpeting, among other things, the following:

Fannie Mae will allow borrowers to refinance up to 120% of their home value if they are currently paying their mortgages on time.

'This is a huge positive development for responsible homeowners who are faithfully making their payments, but simply find themselves in a negative equity situation due to declining real estate values,'....

Isn't it deals like this that got so many homeowners in financial trouble. It's a bad move.

Follow Chris Farrell at @cfarrellecon