Interest-rate freeze harms more than helps

Perspective: Responsible homeowners pay for neighbors' risky behavior

Get smarter. Grow your referral network at Inman Connect San Francisco
Limited seating still available, July 17-20

The Bush Administration’s plan for lenders and loan servicers to freeze monthly mortgage payments for selected homeowners who aren’t able to afford the reset interest rates on their adjustable-rate mortgages is more about politics than governance and is likely to hurt more homeowners than it helps. Indeed, the plan seems to have been designed to benefit a relatively small group of people at the expense of both their neighbors and the broader economy that the plan is supposed to protect.