Bush says plan to help needy homeowners

WASHINGTON, Dec. 6 (UPI) -- President Bush Thursday outlined steps he said are designed to help struggling U.S. homeowners keep their properties.

The wide-reaching proposal includes a temporary 5-year freeze on certain adjustable rate mortgages. He urged Congress to pitch in.

The plan would blend the private sector with the federal government, offering more protection for the borrower through regulatory actions to make the mortgage industry more transparent, reliable and fair.

The plan includes a proposed administration-brokered agreement for a possible temporary freeze on low, introductory mortgage-interest rates that would otherwise jump higher in the next few years.

Refinancing an existing loan into a new private mortgage and moving go a secure FHA loan would be alternatives.

Bush called on members of Congress to join in the fray and make several legislative changes, including modernizing the Federal Housing Administration and temporarily reforming the tax code, and setting up new areas of protection.

The announcement came on the day of news that U.S. loan foreclosures had hit an all-time high.

The president praised a new initiative called the Hope Now Alliance which has been working with the government and the private sector on the issue, voluntarily addressing a national challenge without taxpayer subsidies and government mandates.

Later this month, the Federal Reserve intends to announce stronger lending standards that will help protect borrowers.