From CNN, we have FDIC to mortgage servicers: Freeze ARM rates.
The heat on U.S. mortgage lenders and servicers was turned up a few degrees this week when the country's chief bank regulator publicly proposed that they permanently freeze interest rates on subprime adjustable-rate mortgages (ARMs) for many homeowners.
"Keep it at the starter rate. Convert it into a fixed rate. Make it permanent. And get on with it," Federal Deposit Insurance Corp. Chairman Sheila Bair said in prepared remarks at an investor's conference.
Whoa!!! Talk about clueless.
Lenders borrow short and lend long.
In other words, they borrow money at the short end, and lend long-term. They pocket the difference as a reward for the risk they are taking in lending that money.
This stupid cow is asking lenders to lose money non-stop for the next 30 years.
Ummmm, yeah sure, that's reaaaaally going to happen.
And this is the chairman of the FDIC?
Put the bong down, you stupid bitch!
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