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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: oldirtybastard who wrote (26078)	12/6/2007 3:08:36 AM
From: elmatador	Respond to of 218449

White House nears plan to freeze subprime rates Administration sources say an agreement with the mortgage industry to freeze interest rates on subprime loans is near. WASHINGTON (CNN) -- The Bush administration is close to an agreement to freeze rates for homeowners who face a possibly sharp increase in mortgages interest rates, administration sources said Wednesday. The officials said they are close to a deal on a plan to freeze rates for subprime mortgages for qualified borrowers for five years. The rates would be frozen if borrowers meet certain criteria, including being current on payments and being able to prove they cannot afford a higher rates. Officials caution that representatives of the mortgage industry have yet to agree to this, but they are cautiously optimistic they will sign off on it as well

To: oldirtybastard who wrote (26078)	12/6/2007 8:25:42 AM
From: carranza2	Respond to of 218449

A bit more clarity to the plan. biz.yahoo.com It only affects debtors who are current on their payments. If the debtor is not or is already on the way to foreclosure, too bad, Lawsuits are on the way by disgruntled holders of MBS crud. Not much of a plan as it will probably do little. If the intent was actually to help, it is largely ineffective. Edwards and Clinton are right in this regard, though I disagree with the notion that the Government should do more as a matter of policy. The contracts should be enforced. We should institutionalize the memory of the consequences - to debtors and lenders - of acting stupidly so it won't happen again. A very bad precedent, in my opinion. The market will love it, however. Financials will soar despite the fact that the plan does nothing for them because the debtors who are current are the ones likely to remain current. Even those debtors will be the first to default as the recession puts a wet blanket over economic activity next year. Bottom line: A 5 year freeze on teaser rates is no big deal. I don't see it reversing the primary trends, i.e., recession; oil up; gold up; financials down as more crud gets written down, downrated, liquidated; US and Euro housing hit hard; commodities up and credit crunched, all probably on a global basis.