U.S. Lends Hand on ARMs

Updated from 2:50 p.m. EST

President Bush on Thursday unveiled a government-led plan to help borrowers avoid foreclosure by, among other things, temporarily freezing interest rates on certain subprime adjustable-rate mortgages for five years.

Under the plan, devised by mortgage industry leaders led by Treasury Secretary Henry Paulson, the government will assist struggling homeowners by helping them either refinance their existing loans, moving into loans backed by the Federal Housing Administration, or by freezing adjustable-rate mortgage interest rates for certain borrowers for five years, Bush said during a briefing.

"This will bring relief to homeowners more quickly," Bush said during a press conference. "The steps I've outlined today are a sensible response to a serious problem." ...