Bush to announce mortgage program

WASHINGTON, Aug. 30 (UPI) -- President George W. Bush plans to ask the Federal Housing Administration to raise the price ceiling on mortgage insurance, The New York Times said Thursday.

The president will announce that and a number of other steps Friday, aimed at helping low-income families hit by the subprime lending crisis, officials told the Times. Other steps would include encouraging banks to hold off on foreclosures.

Thousands of people face the loss of their homes because they obtained variable-rate mortgages and are now unable to refinance. The crisis has been followed by wild swings in the stock market and the threat of a recession if consumers and businesses, unable to obtain credit, stop spending.

Other steps would include increasing the amount of FHA mortgage insurance available for refinancing and providing tax breaks.