New York Gov. Eliot Spitzer said today the Bush administration's effort to help troubled subprime borrowers is too narrow in scope. The administration last week unveiled a plan to freeze interest rates for some homeowners with adjustable rate loans, but it only applies to a narrow slice of borrowers.
So what is New York doing to assist borrowers here? Speaking at an awards luncheon for the New York Housing Conference, the governor pushed a multistate initiative that's in the works. The plan calls for servicers to restructure loans of troubled borrowers on a mass basis.
When will it be unveiled? Spitzer said at a press conference after the luncheon that these negotiations take time. It remains to be seen how effective the multistate initiative will be.
Meanwhile, he said to look for more details about his administration's efforts in the subprime arena in his State of the State address next month.