sd_bear wrote:
” Won’t this raise interest rates on new loans since now there is added risk?”
—

Absolutely. That’s what Hillary plan for freezing interest rates and putting a moratorium on foreclosures was criticized for.

http://money.cnn.com/2008/02/12/real_estate/foreclosure_freeze/index.htm?postversion=2008021212

I looks to me like the banks are so innundated with foreclosure that they can’t process them fast enough. As we’ve seen from the numbers, the foreclosures are exceeding sales.

Businesses are never benevolent; the mighty Dollar always rules. Banks are just looking for ways to turn lemons into lemon juice and then come out smelling like a rose.