California lenders agree to freeze rates In an unprecedented move designed to save thousands of California homeowners from foreclosure, Gov. Arnold Schwarzenegger announced a deal Tuesday with four mortgage lenders to freeze adjustable interest rates for some of the state's highest-risk borrowers. The state's agreement with Countrywide Financial Corp., GMAC Mortgage, Litton Loan Servicing and HomeEq Servicing covers more than 25 percent of California's subprime mortgage loans, which generally involve homebuyers with weak credit and require periodic increases in payments after initial low-teaser rates. The deal brokered by Schwarzenegger requires lenders to freeze low interest rates for subprime homeowners who reside in their property. "To lose your home, as probably everyone knows, through a foreclosure is an emotional crash and it sometimes takes years to recuperate from," Schwarzenegger said. "But we don't have to sit idly by to watch the American Dream become the American Nightmare." Read more in Wednesday's Bee. ---------------- I wonder what was in the deal and how long its going to last.