Housing Mortgages Information

Reader Offers Simple Plan to End Foreclosure Turmoil

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?"