“Although the administration is finally giving the foreclosure crisis the attention it deserves, it seems that President Bush is going to give struggling homeowners far less than they need.
With news accounts using terms like ‘whittled down’ and ‘limited’ to describe the scope of the Bush plan, it appears that the president is pushing a freeze for a very narrow group of borrowers. That is unfortunate because this crisis demands a more comprehensive approach that is adequate for the scale of the problem.
“I hope the administration adopts my entire plan and fashions an agreement with the mortgage industry that does three things:
· Observe a foreclosure moratorium of at least 90 days on subprime, owner-occupied homes;
· Freeze the monthly rate on subprime adjustable rate mortgages, with the freeze lasting at least 5 years or until the mortgages have been converted into affordable, fixed-rate loans; and
· Provide status reports on the number of mortgages being modified from destined-to-fail to able-to-work.
“I look forward to the formal announcement of the Bush plan, but I fear that once again the Administration has let down the American middle class.”