Category Credit crisis

Today, there will be rallies in six cities organized by several organizations including Jesse Jackson’s RainbowPush. The main march will be on Wall Street at noon where protesters will demand Wall Street play a major role in helping those who…

Among the qualifications for the ARM rate freeze is that the homeowner must have a higher LTV than 97%. That’s more, not less. Thus only those who owe more than 97% of the value of their home can qualify. (And…

Blowback is the unintended consequences of an action, in this case is the government plan to have mortgage issuers voluntarily freeze rate for some ARM mortgage holders. “I’ve never seen anything such as they’re suggesting here in my career,” said…

Nice visual explanation from Portfolio.

First off, the mortgage rate freeze plan is voluntary. Thus, there will be no contract abrogation. The mortgage issuer probably no longer owns the mortgage, as it has been tossed into a CDO and sold off in tranches. For example,…