May 27
Mortgage News Daily received an email this week from a reader with an
intriguing idea for, if not solving, at least lessening the foreclosure
crisis. What we loved about it was its simplicity.
The reader said that she works with a real estate attorney in Florida,
one of the three states most heavily impacted by foreclosures. She said
that her workload has shifted from helping her employer prepare and
complete some 40 real estate closings a month to working with families
facing foreclosure. She asks a very simple question:
“Has anyone ever suggested that we cap the interest rate on
all those ARMs, regardless of the credit or income of the
borrowers?”