No Free Ride For Subprime Borrowers?

This article attempts to explain to a reader that there is no free ride for a subprime borrower. The point the article makes is that the intro rate for an ARM for a subprime borrower is higher than what a responsible person getting a 30-year fix mortgage at prime would be. I understand this point, but by not letting the rate reset an additional 2 or 3 percent higher they are giving these borrowers something they don't deserve. You are putting hundreds of dollars a month into their pocket. They planned poorly. Why do they deserve to get money in their pocket? Their credit was poor. They earned the original rate and the reset rate. A responsible person earned their prime rate and a subprime borrower earned their higher payment after 2 or so years. Interest rates went up and the market went south. They took a gamble on paying the maximum amount they could afford for a house and it didn't pay off. They took a risk. They lost. Put that house they shouldn't be able to afford back on the market and let the market adjust and jump and fall and do its thing. I would love some feed back with another view. I can't understand why they deserve this? (No free ride for subprime borrowers)

Subprime Mess Winners and Losers for Rate Lock Solution

The number one solution for intervention is the rate lock solution for this subprime mess. The idea is that all the people with adjustable mortgages will have their initial lower interest rate locked in for the entire length of the loan. I hate that a responsible person who took on a loan they could afford and took the extra interest up front to protect themselves down the line gets screwed. That is the person that deserve help. The person that has proved they can take care of money. Why give it to people that took a risk that didn't work in their favor? They didn't plan ahead for when the worst might happen. Why do these people deserve the help? We have a market for a reason. Let it learn its lesson and figure itself out. (Proposed rate freeze to reduce foreclosures)