Deal in the Works To Freeze Rates on Subprime Loans - washingtonpost.com

Deal in the Works To Freeze Rates on Subprime Loans - washingtonpost.com:

"Mortgage rates for homeowners with spotty credit histories would be temporarily frozen under a nearly completed agreement between top Bush administration officials and a broad alliance of Wall Street's biggest banks, mortgage investors, nonprofits and consumer groups.

The plan, which could be announced next week, is designed to prevent soaring mortgage delinquencies from escalating into a full-blown foreclosure crisis that would threaten the broader economy, according to several people involved in or familiar with the discussions. " MORE