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I am shocked and amazed that I am writing this, but I think I agree with something California Governor Arnold Schwarzenegger is doing to avoid home loan defaults. Somebody stop me…
Here’s the deal: According to BusinessWeek (Nov. 28), the big guy in California announced an agreement with four mortgage lenders, which is supposed to help stave off home loan defaults by simplifying the process for adjusting ARMs and freezing loans at the homeowner’s initial teaser rate for a couple of extra years. Can someone point out the down side of this deal to me? Sure, the banks won’t make as much money on interest, but then they would have made a whole lot less money if they were faced with a slew of home loan defaults. And, this may be upholding a situation that is out-of-kilter with the natural economic balance (sort of like subsidizing corn growers), but the positive benefits of keeping people from defaulting on their home loans seems worth the trade-off.
Someone please, educate me. I just can’t stand the fact that I’m agreeing with Arnold.
About this poster:
Posted by:
vwalker
(female, late-30s)
(Posted 12/3/07)
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Home Loan Defaults and Arnold Schwarzenegger?
