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Monday, December 3, 2007

Details of the Freeze Plan

Now we are getting more details on the bail out plan.  It looks like his MLEC plan.  It's not going to do much.
 
In order to qualify for the freeze, you would have to be current on the payments.  So if you are behind, you don't qualify.  And you have to be able to keep making payments at the introductory rates. 
 
In California, a similar plan will help only about 12% of the borrowers with ARMs.
 
There are also talks about investors suing if they are forced to freeze the rates.  As we have said before, this plan makes very little sense without government subsidy.  It's too little too late. 
 
 
 

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