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Money, Finances, Stocks, Bonds, & Investments. A discussion on Money, Finances, Stocks, Bonds, & Investments.

Freeze ARM rates


Money, Finances, Stocks, Bonds, & Investments.

A discussion on Money, Finances, Stocks, Bonds, & Investments.
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Old 10-08-2007, 08:17 AM
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This is kind of an amazing situation to appear. The FDIC wants the initial teaser rate on the adjustable rate mortgages to become the rate for the 30 fixed mortgage. Thats a pretty big thing to say. Do you think the mortgage industry will buy it or should they?

FDIC to mortgage servicers: Freeze ARM rates - The heat on U.S. mortgage lenders and servicers was turned up a few degrees this week when the country's chief bank regulator publicly proposed that they permanently freeze interest rates on subprime adjustable-rate mortgages (ARMs) for many homeowners.

"Keep it at the starter rate. Convert it into a fixed rate. Make it permanent. And get on with it," Federal Deposit Insurance Corp. Chairman Sheila Bair said in prepared remarks at an investor's conference.
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