Interest Rate Roundup

Thursday, December 06, 2007

More "Paulson Plan" details

The official press conference with more details of the mortgage bailout plan is slated for 1:45 p.m. today. But here's what has been leaked in various media reports about the "nitty gritty" of the program:

* It would apply to borrowers who obtained subprime ARMs between 1/1/2005 and 7/31/2007, and whose rates will increase between 1/1/2008 and 7/31/2010.

* Borrowers must not be more than 60 days behind on payments on their current mortgages.

* Borrowers must also have less than 3% equity in the home. And the loans must be on primary homes.

I've shared some of my thoughts already in this post. More coverage can be found in the Washington Post, the New York Times, Bloomberg, and the Financial Times.


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