Here Is the Bush Subprime Mortgage Plan - Devil Is In the Details!

Here is the 34 page executive summary of the Bush Subprime Mortgage Plan, officially called the American Securitization Forum Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans. The devil is in the details as I wrote on the Bankruptcy Law Network.  You judge for yourself.

Commentators are forecasting the plan will not help people who are behind on their mortgage payments, whose ARM rates have already reset and payments increased, those facing foreclosure now, and those who owe mortgage debt(s) greater than their homes are worth.

“The plan applies to first lien subprime residential adjustable rate mortgage (ARM) loans that have an initial fixed rate period of 36 months or less (including “2/28s” and “3/27s”), that:

• were originated between January 1, 2005 and July 31, 2007;
• are included in securitized pools; and
• have an initial interest rate reset between January 1, 2008 and July 31, 2010.”