Treasury regulators and a coalition of banks with mortgage exposure are working together on a plan that will temporarily freeze interest rates on certain subprime home loans.
ADDED: Wall Street Journal article.
Bank Coalition Near Accord to Freeze ARMs Resets
November 30th, 2007 · 1 Comment
Tags: U.S. Real Estate
1 response so far ↓
1 einzige // Dec 1, 2007 at 8:58 am
One wonders what the unintended consequences of this will be.
The exact details of the plan are pretty sketchy, but since it seems to boil down to rewarding people who “need help with” (i.e., “can’t pay”) their mortgage payments, doesn’t that create an incentive to not pay? Isn’t that the wrong incentive? Do we as a society really want to continue to reward irresponsibility?
Leave a Comment