Bush Plan, 5 Year Rate Freeze Moratorium For Mortgage Holders

It looks like a deal is being worked out between the White House and Mortgage Lenders on a freeze on mortgage rates. Anytime the government gets involved in the private markets as abruptly as this their are always serious unintended consequences.
All of the talk about foreclosures has not had me nervous for the economy up until this point. Now I am getting fearful. Let’s hope I am wrong.
President George W. Bush is expected to outline on Thursday a plan to freeze mortgage rates for five years for many U.S. homeowners facing sharp increases in their monthly payments, industry sources said on Wednesday.Final details of the plan are still being worked out after a trade group that represents large mortgage investors presented its framework for implementing a broad rate freeze to the Treasury Department late on Tuesday, the sources said.“The president will make a statement on housing issues tomorrow afternoon,” a senior administration official said, declining to elaborate on details.The sources, who are familiar with details of the trade group’s pitch, said the plan envisions covering subprime loans taken out between January 1, 2005, through the end of this past July, with rates that are due to reset over the coming 2-1/2 years. via Reuters.

Bush Plan, 5 Year Rate Freeze Moratorium For Mortgage Holders 2008-07-25T01:54:00-07:00 Rating: 4.5 Diposkan Oleh: Merlyn Rosell