Unless you were trapped under something heavy this morning, you’ve probably heard about the Treasury Dept.’s impending deal with major lenders to freeze interest rates on certain subprime loans.
This is all coming out of the “Hope Now” alliance, which was originally launched by Treasury Secretary Henry Paulson and designed to get lenders in better communication with borrowers. In the alliance: Countrywide, Wells Fargo, Washington Mutual, Citigroup and others.
So forget communication, now it’s a fix: save distressed borrowers by coming up with a plan to temporarily freeze those teaser rates, again, on certain loans. The details of how to determine who gets the freeze are still, TBD.
