Paulson, HUD to Address Mortgages

Updated from 3:28 p.m. EST

Top Bush administration officials, including Treasury Secretary Henry Paulson, and members of the mortgage industry will brief reporters Thursday afternoon on the Bush administration's efforts to aid homeowners stay in their homes amid the ongoing housing downturn and credit crisis.

Paulson, Housing and Urban Development Secretary Alphonso Jackson, mortgage industry insiders, investors and counselors are expected to participate in the briefing, according to alert from the Treasury Department.

The Wall Street Journal, citing two people familiar with the matter, said President Bush would outline a proposal to freeze some adjustable rate mortgages for five years, while fast-tracking other homeowners to refinanced loans and allowing state and local governments to use more tax-exempt bond programs to fund refinancings.

The higher rates some homeowners would have to pay could increase defaults and foreclosures, leading federal officials to worry about the impact on the overall economy. Paulson earlier this week addressed the plans, first reported in the Journal Friday.

Paulson on Monday told the National Housing Forum in Washington, D.C. that plans under discussion with executives within the mortgage industry do not -- and will not -- include government-sponsored subsidies to lenders or borrowers.

Shares of big mortgage lenders like Countrywide(CFC Quote), Wells Fargo(WFC Quote) and Washington Mutual(WM Quote) rallied on Friday, when the news of the plan was first reported in the Journal.