Llenders Agree to Freeze Rates on Some Loans

Potential Lawsuits, repurchase demands and flawed collateral documentation will cause many more problems than the intended solution will solve. The limited nature of the eligible loans will be far less than the 1,000,000 loans identified by the administration. The parties making the agreement do not have the right to do so.

The rate-freeze approved and being implemented by the government is not nearly the answer to the problems facing the Mortgage Industry, or the Financial District as a whole. The problem is systemic, and the solution is only one of a bitter pill to swallow.

The mortgage rate freeze announced on December 6 will be harder to implement than one might think.  Many questions remain and the answers will have to be negotiated among the parties.  But even after it is implemented, it will not be enough and additional measures will be necessary.