Loan Modification vs Refinance - a solution for liar loans by the GSEs?

Freddie and Fannie are thinking about allowing homeowners to do a refinance without an appraisal.

One of the analysts in the article wonders who would own such a loan. Wouldn't this destory what is left of the integrity of the markets.

http://www.bloomberg.com/apps/news?pid=20601087&sid=amYW0UdC2LdY

I understand we are trying to give bank's balance sheets time to recover by creating massive inflation at the expense of the tax payer. But, do they really have to destroy our markets at the same time.

I suspect if this program is implemented there will be a lot less loan mods and an lot more loan refi business.

Either way this looks like a win win for loan brokers in the loan modification business.