Bush's Mortgage Band Aide
SOURCE: Forbes
The bigger risk of the White House Administration's plan is the long term effects which could deepen and prolong the credit crisis.
The plan applies to just 240,000 subprime loans. The Mortgage Bankers Association reports the number of subprime adjustable rate mortgages at 2.9 million.
16% of subprime borrowers who are already delinquent or in default will not be helped and millions of other homeowner who do not meet the plan's criteria will be left out in the cold.
President Bush, along with Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson, outlined other proposals Thursday that are meant to help the 2 million borrowers facing sharply rising rates on their adjustable-rate mortgages beginning next month. The plan includes refinancing some of the borrowers into private, fixed-rate mortgages, or putting them into Federal Housing Administration loans.
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The bigger risk of the White House Administration's plan is the long term effects which could deepen and prolong the credit crisis.
The plan applies to just 240,000 subprime loans. The Mortgage Bankers Association reports the number of subprime adjustable rate mortgages at 2.9 million.
16% of subprime borrowers who are already delinquent or in default will not be helped and millions of other homeowner who do not meet the plan's criteria will be left out in the cold.
President Bush, along with Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson, outlined other proposals Thursday that are meant to help the 2 million borrowers facing sharply rising rates on their adjustable-rate mortgages beginning next month. The plan includes refinancing some of the borrowers into private, fixed-rate mortgages, or putting them into Federal Housing Administration loans.
Read full report »
