Thursday, October 30, 2008
BIG news – US to guarantee mortgage loans with taxpayers money. Pity those without a home eh?
Scheme coming to UK very soon I'm sure. All it does is push the problem into the future. The U.S. Treasury and the Federal Deposit Insurance Corp. are considering a program that may offer about $500 billion in guarantees for troubled mortgages to stem record foreclosures, people familiar with the matter said. The plan, which might put as many as 3 million homeowners into affordable loans, would require lenders to restructure mortgages based on a borrower's ability to repay. Under one option, the industry would keep lower monthly payments for five years before raising interest rates, the people said.