U.S. Moves to Pre-Empt Foreclosures ; Paulson Says Deal Includes Rate Freeze

Summary

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The Bush administration, faced with criticism for doing little to stop a rapidly unfolding mortgage crisis this year, is working feverishly behind the scenes with lenders on a plan that could forestall a tidal wave of foreclosures and defaults next year.

Treasury Secretary Henry M. Paulson Jr. yesterday said he is confident that the industry will agree on measures this week that should enable the majority of an estimated 1.5 million subprime borrowers to keep their homes and avoid foreclosure when their mortgages reset.

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Extract

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U.S. Moves to Pre-Empt Foreclosures ; Paulson Says Deal Includes Rate Freeze

Wall Street has rallied in recent days in anticipation of what could be substantial relief for borrowers and investors. The plan outlined by regulators would enable subprime borrowers who have kept up with their loan p...

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