Paulson Looking for New Ways to Lower Mortgage Rates

Many mortgage insiders hope that the government jumps on board with the mortgage relief that has been promoted by Sheila Bair’s FDIC loan modification plan the renegotiates the mortgage balance to be reduced to 38% of the borrowers income versus the housing expenses.  This will help millions of distressed homeowners avoid foreclosure and remain in [...]

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Sheila Bair’s Loan Modification plan

With Treasury Secretary Henry Paulson giving little more than lip service to Bair’s plan, the chairman unveiled its details last month.   First, housing payments for delinquent borrowers two months or more would be lowered to 31% of gross monthly income. To get there, mortgage rates could be set as low as 3% for five years, [...]

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