Bush to the rescue

[ldzppln]

I wonder if this is geared towards helping the homeowner in danger of losing his home, or if it's geared towards helping the banks, in danger of losing their assets. Either way, the rest of us will pay for it.

Bush to outline 5-year rate freeze plan: sources

By Patrick Rucker and John Poirier
46 minutes ago

WASHINGTON (Reuters) - 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 the American Securitization Forum, 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 sources, who are familiar with details of the trade group's pitch, said the plan envisions covering subprime loans originated between January 1, 2005, and July 31, 2007, with rates that are due to reset between January 1, 2008, and June or July of 2010.

An estimated 1.8 million U.S. homeowners face pricey rate resets next year alone, the Federal Reserve has said. Officials fear half a million borrowers risk losing their homes.

The plan is primarily aimed at borrowers who can afford their existing rates and who are current on their payments, but who would face default when the rate resets at a higher level.

Under the plan, homeowners who have shown they are a reasonable credit risk but who could not afford their homes with higher rates would qualify for "fast-tracked" loan modification and a five-year interest rate freeze.

Borrowers who have struggled to keep up their loan payments could still qualify for the freeze, but would face more scrutiny before receiving any loan modification.

Treasury Secretary Henry Paulson has worked closely with the American Securitization Forum, mortgage servicers and lenders to hammer out a comprehensive plan to modify troubled loans.

[BlackDiamond]

Originally Posted by ldzppln

, or if it's geared towards helping the banks, in danger of losing their assets.

Hey,

Not sure how they would lose their assets in a foreclosure. When my mother lost her house, she got the boot and they sold the house to someone else.

[ldzppln]

Originally Posted by BlackDiamond

Hey,

Not sure how they would lose their assets in a foreclosure. When my mother lost her house, she got the boot and they sold the house to someone else.

Well, they stand to lose a chunk of change on their assets. If they loaned $400k to someone and the bank foreclosed on the property and sold it for $300k, they lose.

[hork]

regardless of the motives if passed this is actually one initiative proposed by this administration that actually stands to help the working person. and while i'll admit i'm shocked that anything aimed at helping the working class would come from this administration, i must say i'm on board with this one.