Looks like we'll get some answers today at 1:45.
"Dec. 6 (Bloomberg) -- Treasury Secretary Henry Paulson's success in crafting agreement on a five-year fix of subprime mortgage rates owes a debt to an unlikely source: congressional Democrats.
Legislation pushed by House Financial Services Committee Chairman Barney Frank that would bypass lenders and investors, giving power to judges to rewrite loans, helped persuade banks and securities-industry lobbyists to sign on to Paulson's effort, mortgage-industry analysts said."
http://www.bloomberg.com/apps/news?pid=20601103&sid=aAsVymCNU7go&refer=us
This could give new meaning to "here come the judge!"
What about the prudent folks who financed at a 15 or 30 year fixed? Their properties have still declined in value and if they bought in 2004-6 cannot sell without writing a check- in some cases a big check! Their property taxes and insurance rates have increased raising their payments but they will receive no cherries from the gov't.
I suppose that wouldn't be any different than appearing before a Bankruptcy judge. My husband and I were just discussing the same exact issue about the folks who were prudent enough to lock at fixed rates but who now are paying the piper due to this whole subprime/easy money debacle that aided the run up in values.
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