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September 5, 2008 11:11:27 PM CDT

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Bush Mortgage Plan Arrives

Posted Dec 6, 07 3:01 PM CST in Business,  US 

(Newser) – The White House today released its plan to help homeowners threatened by the subprime crisis, asserting 1.2 million could be helped—but only 240,000 of 2.2 million rate resets due next year are covered, CNN reports. The five-year interest rate freeze doesn’t apply to borrowers 30 days late at the time of reset or those 60 days late at any point in the past year.

The plan applies only to rate adjustments beginning in 2008, and excludes homeowners judged capable of paying the reset levels. Moody’s top economist was irked at the enforcement measures—“it depends on moral suasion”—and said, though laudable in its aims, the plan is “going to come up short.” That said, most parties said they were glad to see the administration taking action.

Source CNN

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A home is advertised for sale at a foreclosure auction in Pasadena, Calif. in this Aug. 14, 2007 file photo. Some 2 million homeowners hold $600 billion of subprime adjustable-rate mortgage loans, known...   (Associated Press)
Treasury Secretary Henry Paulson, right, looks on as President Bush makes a statement about subprime mortgages, Thursday, Dec. 6, 2007, in the Roosevelt Room of the White House in Washington. (AP Photo/Charles...   (Associated Press)
President Bush, center, accompanied by Treasury Secretary Henry Paulson, right, and Housing and Urban Development Secretary Alphonso Jackson, as he makes a statement about subprime mortgages, Thursday,...   (Associated Press)
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George W. Bush  • mortgage crisis  • Henry Paulson  • borrowers  • Moody's  • adjustable rates


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