Mortgage help is on the way...sort of

The Treasury Department, along with a group of major lenders calling themselves the Hope Now Alliance, are negotiating a plan to freeze interest rates on adjustable mortgages. The framework of the plan is to freeze rates for up to seven years for borrowers that can afford their teaser rate and have been paying their mortgage on time. Homeowners that can't even afford the teaser rate and have been late on their payment are left out, as are those who can afford the rate increase. This seems to pacify both sides of the table. They get to save the day for less risky borrowers that have held up their side of the bargain so far by paying on time, but they avoid "bailing out" borrowers who knew from day one they had bought a home they couldn't afford. Politically and financially expedient - I'm interested to see how this plays out.