Markets Rally on Mortgage Rescue Report
Wall Street has staged a late-day rally, evidently on a Reuters report that says President Obama's administration is finalizing a plan to subsidize mortgages for homeowners having trouble meeting their payments.
The Dow dove 160 points at opening, stayed low all day then hit its low shortly after 3 p.m.
Since then, it's staged a 200-point climb and, with five minutes left on the trading day, the Dow is back to nearly even on the day, an amazingly swift rally.
We'll just paste the top of the Reuters story in here so you can read it verbatim:
"WASHINGTON (Reuters) - The Obama administration is hammering out a program to subsidize mortgage payments for troubled homeowners who have gone through a standardized re-appraisal and affordability test, sources familiar with the plan said on Thursday.
The program would be a major break from existing aid programs, which are triggered once homeowners fall into arrears.
Under the plan being contemplated, mortgage companies would use a uniform eligibility test even before a borrower becomes delinquent, sources said."
Check back as The Post follows this story.
February 12, 2009; 4:01 PM ET
Categories: The Ticker | Tags: Obama, mortgage workouts
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