subprime arms: Plan to Freeze Subprime Mortgage Rates
- 12/09/07 04:21 PM
This Thursday, Treasury Secretary Paulson and President Bush announced the details of a plan to freeze the interest rates on many subprime ARMs (Adjustable Rate Mortgages). While this spurred the stock markets and initially the idea sounds good, it's like putting a band-aide on a gunshot wound. Many of the subprime loans that were closed during the mortgage and real estate boom were "stated income" loans. These loans don't require much, if any, verification of income and are often called "liar loans" within the lending industry. Unfortunately, the outcome of many of these loans will be the fact that borrowers are … (0 comments)
This Thursday, Treasury Secretary Paulson and President Bush announced the details of a plan to freeze the interest rates on many subprime ARMs (Adjustable Rate Mortgages). While this spurred the stock markets and initially the idea sounds good, it's like putting a band-aide on a gunshot wound.;)
;)
