Today, it was reported that 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
An official announcement of the plan’s details is scheduled for Thursday.
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 Newsstory).
Debate over the plan has centered around the length of any interest rate freeze, with federal regulators pushing for a seven-year freeze, and the industry holding out for a one- to two-year reprieve. — Inman News
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Today, it was reported that 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.
Chris Johnson
December 5th, 2007
the fun part? Most of the defaults are pre-rate raise. THis is just to induce people not to be foreclosed in some nebulous future.