Official announcement expected Thursday
Wednesday, December 05, 2007
A coalition of lenders, loan servicers and investors have reportedly agreed to a plan that would freeze interest rates on some subprime mortgage loans for five years.
Borrowers with loans made between Jan. 1, 2005, through July 30 of this year who face interest rate resets between Jan. 1, 2008, and July 31, 2010, would be eligible for interest rate freeze, the Associated Press reported, citing unnamed sources including Congressional aides.
An official announcement of the plan’s details is scheduled for Thursday, AP reported.Treasury Secretary Henry Paulson said Monday the plan would help homeowners who are current on their payments but cannot afford a higher adjusted rate (see Inman News story).
Debate over the plan has centered around the length of any interest rate freeze, AP reported, with federal regulators pushing for a seven-year freeze, and the industry holding out for a one- to two-year reprieve.
Benn Rosales
December 5, 2007 at 6:00 pm
To bad you have to jump through fire to qualify.
Vicki Moore
December 5, 2007 at 6:10 pm
I was wondering about that.
Athol Kay
December 5, 2007 at 6:53 pm
I just don’t know about this. I don’t want to see people lose their homes, but at the same time – why did they buy so far beyond their means?
This seems to be a reward for greed and or stupidity.
Robert D. Ashby
December 5, 2007 at 10:01 pm
Look at the typical foreclosure and you will see (at least in South Florida) that they are either investors or homeowners that used “exotic” mortgages to buy more home than they had any business buying. The homeowners deserving help are a relatively small percentage and any “bailout plan” will likely not help them anyway. Just my opinion from what I see down here.