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Rate Freeze Rewards Greedy, Critics Grumble

'What about those of us who played by the rules?'

By Sam Gale Rosen,  Newser Staff

Posted Dec 7, 2007 12:50 PM CST
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(Newser) – Many who played it conservative during the housing boom are miffed about the mortgage rate freeze, grumbling that it rewards the greedy and irresponsible, the Washington Post reports. "What about those of us who played by the rules?" asks one. "Can we get six months of free gasoline?" Politicians are trying to figure out how to deal with the looming backlash.

"I think we shouldn't be bailing out the homeowners that got greedy buying homes they couldn't afford," said one critic, noting that the government did not help those whose 401(k) plans tanked when the tech bubble burst. The debate is likely to intensify because some of the hardest-hit states—including Florida, Michigan, and Ohio—are also key primary states.

Treasury Secretary Henry Paulson, left, accompanied by members of the mortgage industry, and Housing and Urban Development Secretary Alphonso Jackson, third from right, talks about mortgages during a news conference at the Treasury Department in Washington, Thursday, Dec. 6, 2007. (AP Photo/Kevin Wolf)
Treasury Secretary Henry Paulson, left, accompanied by members of the mortgage industry, and Housing and Urban Development Secretary Alphonso Jackson, third from right, talks about mortgages during a...   (Associated Press)
Housing and Urban Development Secretary Alphonso Jackson, right, accompanied by Treasury Secretary Henry Paulson, speaks at a news conference on mortgages, Thursday, Dec. 6, 2007, at the Treasury Department in Washington. (AP Photo/Kevin Wolf)
Housing and Urban Development Secretary Alphonso Jackson, right, accompanied by Treasury Secretary Henry Paulson, speaks at a news conference on mortgages, Thursday, Dec. 6, 2007, at the Treasury Department...   (Associated Press)
The mortgage rate freeze is drawing flak from homeowners who played it conservative.
The mortgage rate freeze is drawing flak from homeowners who played it conservative.   (Getty Images)
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COMMENTS
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Could there have been a better solution?
BusinessWeek

Analysis: Plan tilts toward lenders, not borrowers
New York Times

Some anger at the plan
Patrick.net

 
subprime mortgages • mortgage rate freeze

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