If nothing else it’ll at least give the banks time to work through a lot of the foreclosures that have been piling up.

As far as the housing bust goes – if they keep people in homes they can’t afford by lowering the rates or freezing them it’ll just drag this out even longer. Not to mention piss a lot of people off who didn’t miss payments and had a fixed rate that is higher than what loans will be frozen at. This plan really disgusts me.

Won’t this raise interest rates on new loans since now there is added risk?