President Bush & Secretary of the Treasury Hank Paulson announced our government's plan to Freeze ARM Interest Rates yesterday afternoon. You can read the proposal here. Though many call it a Subprime "bail-out" plan, President Bush said that it is everything but for investors.
It is estimated that approximately 1.8 million Subprime mortgages are due to reset (which means higher rates) by 2008 & 2009. Ensuing foreclosures at which point appear inevitable.
Well, the premise of the new plan is to aid an estimated 1.2 million homeowners in avoiding foreclosure (this according to Paulson).
From the article on MarketWatch:
"The five-year freeze, Paulson said, would give borrowers a chance 'to work through this housing cycle.'"
The Mortgage Banker's Association further commented,
"The administration's plan is a model 'best practice' for the industry to address a number of competing interests, he added. 'Most important, it constitutes another creative way to allow current borrowers to stay in their homes.'"
According to the plan and who it will help...
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Mortgage Advisor
Direct: 323.810.2175 | E-mail: ricardo (at) ricardobueno (dot) com
And if you haven't already,
at www.industry-report.com
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