WH Says It’s “Too Soon” to Discuss Subprime Loan Plan

The subprime mortgage problem is spiraling out of control, but the White House has declined to discuss possible steps toward alleviating the problem, or possible plans to make deals with lenders to freeze the interest rates on some loans.

WASHINGTON (Reuters) – The White House on Friday said it was “premature” to discuss possible new steps to address the mortgage crisis and declined to comment on reports that officials are working on a deal with lenders to freeze interest rates on some loans.

“It’s premature to talk about those discussions at this point,” White House spokesman Scott Stanzel told reporters, when pressed on whether the administration is working on a new initiative regarding the mortgage market.

Stanzel said that administration officials “certainly have been working in close consultation with the private sector and with the industry to look at ways in which we can help people keep their homes.”  (Emphasis added)

Uh huh, the White House is in cahoots working with the “private sector” and with the “industry” for solutions.  Aren’t these the same entities making massive profit from subprime loans?

I won’t hold my breath…

6 thoughts on “WH Says It’s “Too Soon” to Discuss Subprime Loan Plan

  1. The latest I heard was forcing the banks and lenders to keep the same rate the arm began at.
    This will never fly with business, as their main goal with arms was to squeeze the borrower dry.

    They’ve done such a good j0b it’s now a problem…

  2. IMHO, it is too late to approach this problem. What the banking industry has done is to find a way to bypass the protections offered by the federal protections offered for savings (FDIC) and instead appropiate property at bargain prices. In the short term, they will suffer enormous losses, but in the long term, they will reap trillions. The property transfers are being funneled within the banking institutions. Where else is there any money?

  3. If this works out, these folks will be given a reprieve; they should not look a gift horse in the mouth. They should show some fiscal responsibility by purchasing inexpensive Mortgage Unemployment Insurance. If they are suddenly out of work due to the predicted economic slowdown, this coverage could provide cash when it’s needed most. The Mortgage Safety Plan is a brand new plan & can be investigaged at http://www.mortgagesafetyplan.com

  4. What “folks” are you talking about, ncheel? This article is a criticism of the White House, and that fact that this president is dragging his heels AGAIN when there is a profit to be made by his “base.”

    Woulda, coulda, shoulda on the mortgage insurance. These people are in trouble NOW — the barn door broke, the horse escaped, and the barn burned down — but thank goodness you’re here to let everyone know what they should have done.

    Next time you come here, I’d like to hear your schpiel on how the predatory lenders should have shown fiscal responsibility and honesty in lending.

  5. The lending institutions knew perfectly well this would happen. They are simply trying to fulfill Bush’s promise of turning ours into “an ownership society”. He just didn’t specify that it would be Corporate America that owns everything.

    The lending institutions were the ones who demonstrated the fiscal irresponsibility by giving loans to people they knew could not afford to pay them down the road. If the bank says they’ll give you a loan to buy your first house, don’t you have a right to expect that they considered whether or not you could pay for it as one of the deciding factors? Clearly the bank did in these cases, and must have realized that the borrower would have problems “if” (knowing it was “when”) the rate would go up. The banks knew things their borrowers did not. To me, that suggests that the loans were not made “in good faith.”

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