World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search


Bush Works Out Deal To Help 1,000,000+ Homeowners

Bush Administration Works Out Deal That May Help More Than One Million US Homeowners

President Bush has outlined a deal to help as many as 1.2 million American homeowners who may be unable to pay their home loans next year.

He announced a deal between banking regulators and lenders Thursday that would freeze interest rates on certain "subprime" mortgages for five years.

Subprime loans go to borrowers with poor credit, and usually have low "introductory" interest rates. Lenders can raise those interest rates after a set period, boosting the monthly payment - and the odds the borrower will default.

The plan would also help some troubled homeowners change to different kinds of mortgages that are easier to pay off.

The relief plan comes on the same day the Mortgage Bankers Association reported that the number of foreclosures has hit an all-time.

The bankers report is based on a survey of 45 million home loans and says foreclosures are underway for about seven-tenths of one percent of these loans between July and September. The same report says the number of Americans who fell behind on their loan payments hit a 20-year high of nearly 6.6 percent.

A top official of the U.S. central bank, Randall Kroszner, told a Congressional committee Thursday that many of the subprime problems grow out of lax lending standards. Kroszner, who is one of the governors of the Federal Reserve, also praised efforts to work out new agreements between lenders and borrowers because foreclosure is the "worst possible option for consumers, investors, and communities."


More: Latest World News | Top World News | World Digest | Archives

© Scoop Media

World Headlines


At The UN: Paris Climate Agreement Moves Closer To Entry Into Force

The Paris Agreement on climate change moved closer toward entering into force in 2016 as 31 more countries joined the agreement today at a special event hosted by United Nations Secretary-General Ban Ki-moon. More>>



Gordon Campbell: On The End Game In Spain (And Other World News)

The coverage of international news seems almost entirely dependent on a random selection of whatever some overseas news agency happens to be carrying overnight... Here are a few interesting international stories that have largely flown beneath the radar this past week. More>>

Amnesty/Human Rights Watch: Appalling Abuse, Neglect Of Refugees On Nauru

Refugees and asylum seekers on Nauru, most of whom have been held there for three years, routinely face neglect by health workers and other service providers who have been hired by the Australian government, as well as frequent unpunished assaults by local Nauruans. More>>


Other Australian Detention

Gordon Campbell: On The Censorship Havoc In South Africa’s State Broadcaster

Demands have included an order to staff that there should be no further negative news about the country’s President Jacob Zuma, and SABC camera operators responsible for choosing camera angles that have allegedly made the President ‘look shorter’ were to be retrained... More>>


Gordon Campbell: On A Bad Week For Malcolm Turnbull, And The Queen

Malcolm Turnbull’s immediate goal – mere survival – is still within his grasp... In every other respect though, this election has been a total disaster for the Liberals. More>>


Gordon Campbell: On Bidding Bye Bye To Boris

Boris Johnson’s exit from the contest for Conservative Party leadership supports the conspiracy theory that he never really expected the “Leave” option to win the referendum – and he has no intention now of picking up the poisoned chalice that managing the outcome will entail... More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news