Banks may freeze subprime

McClatchy

WASHINGTON — A coalition of major banks with exposure to problem subprime mortgages is finalizing a plan to freeze hundreds of thousands of adjustable-rate home loans at low introductory rates. That would prevent the loans from adjusting to much higher rates, which could trigger mass defaults and foreclosures. Should subprime ARMs reset, many homeowners could be forced into costly foreclosure proceedings that could prevent a rebound of slumping local housing markets and spread to other industries, potentially even tipping the economy into recession.

I've got my fingers crossed. I wouldn't mind if my loan's rate wouldn't increase. However, I am not sure if my mortgage is even subprime. I think it is, because it was insured through some government program. But I am not sure about that.