INTERVIEW – Stephen Moore – Economist at The Heritage Foundation

Topic: Thousands line up for zero-down-payment, subprime mortgage

• Borrowers can have low credit scores, but have to go through an education session about the program and submit all necessary documents, from income statements to phone bills.
• They must go through counseling to understand their monthly budget and ensure they can afford the mortgage payment.
• The loans are 15- or 30-year fixed with interest rates below market, about 4.5 percent.