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Morning Mortgage Meltdown: Crises for All!

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Thought solid credit would put you in the clear? Even those so-called low risk borrowers who have taken on prime mortgages are beginning to tank across the board, as folks default on credit card and uto payments at an alarmingly rapid pace, reports the New York Times. Major lenders Bank of America, Citigroup, Contrywide and WaMu, to name a few, will announce today that both prime and subprime borrowers who are more than 30 months behind on payments will be granted a 30-day grace period in order to get it together on the refinancing front. “Subprime was a symptom of the problem,” quoth James F. Keegan, a bond portfolio manager at American Century Investments, a mutual fund company. “The problem was we had a debt or credit bubble.”
· Mortgage Crisis Spreads Past Subprime Loans [NYT]

[Image courtesy Free Republic]

UPDATE— And we have the plan: New Program Aims to Forestall Foreclosures [NYT]