How is the govt locking down interest rates on mortgages going to ';cost the taxpayer';?

It only prevents predatory lenders from ratcheting up rates on those naive enough to get snared. It prevents banks from losing money and ';the little guy'; from losing his house and credit, but nobody has to pay for it. If the banks were smart they would do this themselves.How is the govt locking down interest rates on mortgages going to ';cost the taxpayer';?
It doesn't, it will actually save the government money in that people losing their homes will require some sort of government aid. But the real problem is allowing S%26amp;L to conduct these practices of bait and switch in the first place and then not doing something about it when it goes bad for them. I want a fixed rate law and no more adjustable rates.How is the govt locking down interest rates on mortgages going to ';cost the taxpayer';?
I have no sympathy for anyone shortsighted enough to sign an adjustable rate mortgage. Just what in the hell did they think was going to happen when their introductory rate expired?





I'll bet these same idiots think Columbia House is going to continue selling them 10 compact discs for 1 cent in perpetuity.
The lending people are watching the market and would have a bunch of repo's ready to sell once the market recovers.





Hey, the market was over inflated and had to correct. A good thing is that by freezing rates, it helps the people get their footing and not loose the house.





My home is still 12% above what I paid for it and holding.
When the Banks lose money on interest rates, who will they pass on their loses too ?? The non-taxpayer ??
I agree
Good question. You get a star for this one.





The lock-down on interest rates is only on ARM's and only those that adjust excessively. My understanding is that this idea is coming from the Mortgage Lenders Associations to start with as a way to police themselves and put the onus of the ';sub-prime crisis'; on the predatory lenders who made the bad loans in the first place.





http://news.yahoo.com/s/ap/20071206/ap_o鈥?/a>





Many of the major offenders have already gone under. The offenders included clauses in their sub-prime contracts to allow these massive adjustments in the first place and then didn't explain this to the borrowers. If they go under for their predatory practices, they will be reaping what they sowed!