A day after U.S. President George W. Bush announced his administration’s subprime rescue plan, industry insiders like Gregg Marcus, Managing Director of Long Island-based Somerset Mortgage Bankers, have begun to criticize the plan for either getting too involved or not involved enough in the subprime crisis.

In a press release, Marcus says Bush’s plan to freeze interest rates on certain subprime loans is designed to help only one segment of the borrowing community, while simultaneously ignoring borrowers who are facing skyrocketing payments on loans they refinanced into during the last few years.
“At least 30-percent of mortgage borrowers in Long Island have subprime loans and over 60-percent of those loans were refinanced. This plan needs to address those borrowers. It should apply to everybody who has been performing well on their current loan without going delinquent, not just to new buyers,” Marcus asserted.