Cleaning "Toxic" Mortgage loans

Everyone--Alt A, Sub-prime, conventional, jumbo, FHA, VA--should get lower interest rates. Not just those who go through the rigor of a refinance.

How? Lenders send a notice to borrowers--"Your interest rate has been changed to ___ and your new payment is ____."

When? By July 4th.

The result-

• The borrower can more easily make his monthly payment--making the loan more secure for the lender.
• The borrower has extra money to spend--boosting the economy.
• The investor has a more secure, more valuable loan--improving its balance sheet.

But some borrowers may not qualify? The answer--the lender already made the loan, so qualification as a new borrower does not apply. The lender and borrower are already married. Dropping the rate merely makes the borrower closer to qualifying. If the rate stays high, then the borrower is worse off, and for the lender, the loan is more risky.