Submitted by Scott Baker, Dec 7, 2007 13:06

Nice try, but the Sun is ignoring the fact that with so many way to exclude borrowers, the percentage of people who would actually qualify for this rearrangement of payments is vanishingly small. As the Times pointed out today, the plan is really the brainchild of the lenders anyway, not the borrowers. The lending institutions realize, correctly, that they would lose money if masses of people were to lose their homes due to resets, even though they might make a little more money on those who could still afford the reset rates. It's better to keep millions of people in their homes, than to collect on a few thousand who could pay the higher rates. With too many homes on the market, the lenders would not only be stuck with a huge inventory of homes, they would be stuck with them precisely when home prices crash due to the glut of homes. Still, they have no intention of dragging along people who aren't paying their mortgages already, nor people who can afford to pay the higher rates. no, they only want to "help" the small subset of people who can pay now, but couldn't pay the reset rates. Pretty self-serving, but then what do you expect out of this anti-consumer administration, who believes in no regulations, except those that help predatory lenders.

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