Mike Castle wants to shield banks from the consequences of providing crazy ass “NIJA” loans.

Not all investors in mortgage-backed securities are thrilled with the idea of freezing interest rates on hundreds of thousands of adjustable-rate mortgages, and some have threatened to sue if the deal goes through. They won’t be able to, though, if a bill sponsored by Republican congressman Mike Castle of Delaware becomes law. Castle’s bill would shield the mortgage banks from these lawsuits, giving them a free hand to go along with the administration’s bailout. This would do enormous damage to the reputation of securities backed by American debt.

As the NRO points out, this scheme to protect bank profits also hurts renters who have been hoping for a dip in housing prices and an opportunity to buy. The responsible people, “waited and saved for such an opportunity, even as others rushed headlong into mortgages they now find themselves unable to pay back.”

No matter. Mike Castle wants to protect bank profits at any cost. SCREW YOU RESPONSIBLE PEOPLE.

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