Jim

Maybe some relief for some who’re getting hammered by their home loans

In Biz on December 5, 2007 at 9:32 pm

I have no idea how many folks a five-year reprieve from ballooning interest rates will save from bankruptcy. So many people have already defaulted. I don’t really have a fantastic rate on my mortgage, but it’s not horrible and it’s not going anywhere. My heart goes out to those who got themselves into a vicious adjustable-rate deal and are losing their homes, their dreams. Yeah, I guess you could say they should’ve known better, but it’s hard not to jump at that chance at some tiny slice of the American Pie, when those chances come along more rarely for some than for others.

Here’s the latest on Big Guv’mint’s efforts to stave off a wave of homelessness and misery:

Subprime Rate Five-Year Fix Eyed by U.S. Regulators (Update5)

By Alison Vekshin

Dec. 5 (Bloomberg) — Federal regulators and U.S. lenders are focusing on five years as the duration of an interest-rate freeze on subprime mortgages, said a person familiar with negotiations aimed at fending off a jump in foreclosures.

Such an agreement would satisfy the shortest fix sought by the Federal Deposit Insurance Corp. That period is longer than the minimum, two- to three-year modifications suggested by Fannie Mae, the largest source of finance for American home loans. The Treasury Department’s Office of Thrift Supervision advocated between three and five years.


Will it work? Or will it just make things worse? Most everything that’s been done in the last 30 years has worked to the advantage of the super-wealthy, one way or another.

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