Paulson outlines mortgage aid plan

WASHINGTON, Dec. 3 (UPI) -- The U.S. Treasury Department is "aggressively pursuing" a three-part plan to help homeowners avoid foreclosures, Treasury Secretary Henry Paulson said Monday.

Based on outcomes of a meeting of representatives from all segments in the mortgage industry, "we are implementing a three-point plan to avoid preventable foreclosures and to minimize the impact of the housing downturn on the U.S. economy," Paulson said during a meeting at the Office of Thrift Supervision National Housing Forum.

The plan includes outreach to homeowners who are struggling with the mortgages and works to increase the availability of affordable solutions for these borrowers, he said in prepared remarks. The department also is working with the mortgage industry "to develop a systematic means of efficiently moving able homeowners into sustainable mortgages."

Hope Now -- a coalition of mortgage servicers, counselors and investors working to avoid preventable foreclosures and to improve the functioning of the mortgage markets -- has picked up its efforts to contact people before their rates reset, he said.

The action plan will make more mortgage products available for borrowers "who have the financial wherewithal to own a home, but are struggling with the higher adjusted rate on their subprime mortgages."