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Countrywide plan may cut mortgage rates for 395,000 borrowers - Los Angeles Times (http://www.latimes.com/news/printedition/front/la-fi-countrywide24-2008oct24,0,5547798.story - broken link)
The Countrywide plan, which is aimed at borrowers with subprime mortgages or pay-option adjustable-rate home loans, known as option ARMs, would temporarily cut interest rates on some loans to as low as 2.5%. Some borrowers who owe more than their homes are worth could even see their loan balances reduced, giving them equity once again in their properties.
The idea is to modify a loan's terms just enough to create a new monthly payment, including principal, interest, taxes and property insurance, equal to 34% of a borrower's verified monthly income.
And Rep. Barney Frank is taking the plan and running with it:
A spokesman for U.S. Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, called the program "the first truly comprehensive plan we've seen from the private sector."
Frank last week gave 10 other major mortgage-servicing companies an ultimatum to adopt programs similar to the Countrywide plan. If the servicers don't comply, "we'll write legislation that does it for them," said Steven Adamske, a spokesman for the lawmaker.
This is some of the biggest news to come out of this mess yet, IMO. If this is adopted by the entire mortgage industry, and/or backed by legislation, we are going to see a drastic drop in foreclosures and perhaps finally see some stabilization set in with the housing market.
This is some of the biggest news to come out of this mess yet, IMO. If this is adopted by the entire mortgage industry, and/or backed by legislation, we are going to see a drastic drop in foreclosures and perhaps finally see some stabilization set in with the housing market.
Country Wide helped to start this bull crap
who gave a sweetheart deal to Chris Dodd
and now are the "good guys"
good grief
You're right, they were part of the problem. In fact, this is part of the settlement in a massive lawsuit against Countrywide. They are going to be, and should be, part of the solution. Would you recommend another bailout? $300 Billion more from McCain for us taxpayers to take on all these loans?
You're right, they were part of the problem. In fact, this is part of the settlement in a massive lawsuit against Countrywide. They are going to be, and should be, part of the solution. Would you recommend another bailout? $300 Billion more from McCain for us taxpayers to take on all these loans?
No, I do not agree with the bailout.
I do not feel Countrywide should have a say in anything unless they have cleaned up their mistakes, why should we trust them?
I also think Barney Frank and Chris Dodd should be removed from their posts.
Time to quit paying my mortgage and get on the new welfare train!! Toot Toot All aboard to instant equity!! Toot tooooooot (that one's for the crap they've got to be sniffing thinking up a deal like this)
This is Countrywide keeping home"owners" on the hook, making monthly payments on a 500k mortgage for a home that's now worth 300k.
If the banks want to deal, you can bet the deal is in their favor. Note the rate cute is temporary. Which means in another few years, you're on the hook for the full amount again. Even though it'll be 2025 before your house is worth what you paid in 2005.
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