The American culture at it's best - bailing out the irresponsible...

[brownsfan019 17]

We've all read stories about the impending mortgage crisis in the US due to ARM's readjusting upwards now and in the foreseeable future. I think I may have started a thread awhile back about it.

 

Well, great news for all the irresponsible, debt-lovers in America - the TREASURY and the big banks are coming to the rescue...

 

===========================================

 

http://www.nytimes.com/aponline/business/apee-debt.html?_r=1&ref=business&oref=slogin

 

Paulson Foresees Deal on Mortgage Rates

 

Article Tools Sponsored By

By THE ASSOCIATED PRESS

Published: December 3, 2007

 

WASHINGTON, Dec. 3 (AP)  Treasury Secretary Henry M. Paulson Jr. said today that he is confident there will soon be an agreement to help thousands of homeowners avoid mortgage defaults by temporarily freezing their interest rates.

 

Treasury Secretary Henry M. Paulson Jr. at a national housing conference in Washington on Monday.

 

Mr. Paulson told a national housing conference that this effort involved a “pragmatic response†to current realities as the economy goes through the worst housing slump in more than two decades. The number of homeowners struggling to meet higher payments because their initial introductory rates are resetting is currently soaring.

 

Mr. Paulson and other top Treasury officials have been holding talks with major players in the mortgage industry over the past several weeks to hammer out an agreement that would freeze the lower introductory rates to keep them from resetting to higher levels for a period of years.

 

“We are working aggressively and quickly, utilizing available tools and creating new ones, to help financially responsible but struggling homeowners,†Mr. Paulson said in a speech to a national housing conference sponsored by the Office of Thrift Supervision.

 

One of the outstanding issues is how long the freeze will last. Some government regulators are pushing for five to seven years but investors, who will see lower payments on the loans, are arguing for a shorter period of one to two years.

 

An estimated two million subprime mortgages, loans offered to borrowers with spotty credit histories, are scheduled to reset to much higher levels by the end of 2008. Those resets will push the payment on a typical mortgage up by $350 per month, taking it from $1,200 currently to $1,550.

 

Mr. Paulson said he believed the disagreements can be resolved without delay. Some expect the administration to unveil the completed deal later this week, but Mr. Paulson was not as specific in his remarks, saying only, “I am confident they will finalize these standards soon.â€Â

 

Mt. Paulson said he believed the mortgage industry would move to put the new program into place quickly and would also adopt benchmarks to measure progress going forward.

 

“As a result, what was a fragmented, cumbersome process can be a coordinated effort which more quickly helps able homeowners,†he said.

 

The new program is being aimed at homeowners who have steady incomes and relatively clean repayment histories who could afford the lower introductory mortgage rates but cannot afford the higher adjusted rate.

 

The rate freeze is part of a three-pronged program the administration is pushing that also includes stepping up efforts to contact at-risk homeowners and encouraging creation of new programs that would embrace more affordable loans to homeowners who would like to refinance to mortgages with lower payments.

 

Mr. Paulson said that the administration is putting forward a new proposal to allow state and local governments more temporary authority to broaden their tax-exempt bond programs to include mortgage refinancing.

 

He also called on Congress to pass a number of pending bills that would address the housing crisis in such ways as expanding the availability of Federal Housing Administration insured loans and boosting government oversight of mortgage giants Fannie Mae and Freddie Mac.

 

The administration has come under criticism from Democrats who have complained that the proposals put forward so far have been too modest in light of the crisis facing the housing industry and the threat that the housing slump could lead to a full-blown recession.

[jcorp 10]

....and I had just recently convinced my daughter to refi at a fixed rate!! Finally convinced her that it was the responsible thing to do. Now the Gov. tells us both we are chumps!!!!

[MC 10]

....and I had just recently convinced my daughter to refi at a fixed rate!! Finally convinced her that it was the responsible thing to do. Now the Gov. tells us both we are chumps!!!!

 

This whole thing is disgusting!!!

Way to reward the fools, those with bad credit and people that overextended and $hit on those that do the right thing.

 

Just 1 more example of why I want to but can't bring myself to except karma.

[brownsfan019 17]

Bush to Unveil Aid to Homeowners

 

Lenders Agree to Freeze Rates on Some Loans

 

U.S. Mortgage Delinquencies Rise to 20-Year High

 

Well, this should get interesting...

 

:\

[brownsfan019 17]

Interesting reads here...

 

Four Reasons to Oppose the Sub-Prime Mortgage Bail Out

 

Sixty-One Economists Sign Letter Opposing Subprime Mortgage Bail Out

 

-------------------------

 

I know nothing about this site, so not sure if there's more being played here than at face value. Good articles nonetheless.