Bush Announces Five-Year Interest Rate Freeze Agreement
President Bush released details of a new mortgage relief agreement on December 6, 2007. The plan provides a five-year interest rate freeze for certain borrowers who are current with their monthly payments but face unaffordable rate increases when their Adjustable Rate Mortgages (“ARMs”) reset before July 31, 2010. The agreement resulted from weeks of negotiations between the White House, Treasury Department officials, mortgage lenders, and the Wall Street firms to whom mortgage debt has been sold. Bush described the plan not as a cure-all, but as an effort to “limit the disruption” caused by the subprime lending crisis, reported The Washington Post. View full article (PDF).