Quote:
Originally Posted by Dean
Here is the transcript.
Basically Hillary wants to freeze existing ARM rates for 5 years but Obama rightly points out that that would have adverse effect on everyone. She has since said it would not be a mandatory freeze, but that just shows she didn't understand what she was talking about.
Freezing existing ARM loan rates would drive rates for new loans up making it hard for new buyers, or those existing loan holders to refinance, thus driving the housing problem even further down.
There is a lot more to it, but that is the gist.
Right now with LIBOR and prime rates down, refis for qualified borrowers are probably going to resolve far more of these sub prime issues than anything short of "we will pay your loan for you" legislation.
Raising qualifying loan limits may help a little as well, but it is a double edged sword. |
Thanks, that makes more sense.
I was really more curious about the new economic advisor you mentioned. Is that just your speculation? I couldn't find anything on Google.