From Bloomberg - Bush will announce at 11:10 a.m. in Washington that the Federal Housing Administration, which insures mortgages for low- and middle-income borrowers, will guarantee loans for delinquent borrowers, allowing them to avoid foreclosure and refinance at more favorable rates.
Dear Mr. Bush,
My wife & I are able to understand basic Time/Value/Money calculations. We are also capable of realizing that even our combined incomes will not be able to make payments on a $1M home (although Countrywide tried their hardest to convince us otherwise). We used to think these were positive traits, however we now see that we were so wrong in securing a fixed-rate mortgage we could actually afford. Please can we have your permission to switch to a Subprime so we can qualify for some nice lower rates as I don't think we're currently eligible? Oh, we have some crazily responsible friends who'd like to get some of these rates & guarantees too.
Yes, of course I'm sympathetic to people who are losing their homes. If they were duped by unscrupulous financiers & brokers than surely that's a matter for the criminal courts not an FHA bail out? Perhaps the Feds should have refunded the Enron investor's money too? How about a nice Federal refund if the auto dealership talked you into a silly finance deal?