Mortgage Freeze in Works

Summary


WASHINGTON -- The Bush administration and the mortgage industry, trying to combat a massive wave of foreclosures, are hammering out a proposal to temporarily freeze interest rates on certain troubled subprime mortgages. If adopted, it would be the biggest action taken to cope with the unfolding crisis.

The administration was still holding discussions on Friday, trying to work out details of the proposal, which could be unveiled as early as next week. Some indications of the outlines of the proposal may come in a speech Treasury Secretary Henry Paulson is scheduled to deliver to a national housing conference on Monday.

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Extract


Mortgage Freeze in Works

The talks have involved all the federal banking regulators and major players in the mortgage industry such as Citigroup Inc., Wel...

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