White House nears plan to freeze subprime rates

WASHINGTON (CNN) -- The Bush administration is close to an agreement to freeze rates for homeowners who face a possibly sharp increase in mortgages interest rates, administration sources said Wednesday.

The officials said they are close to a deal on a plan to freeze rates for subprime mortgages for qualified borrowers for five years. The rates would be frozen if borrowers meet certain criteria, including being current on payments and being able to prove they cannot afford a higher rates.

Officials caution that representatives of the mortgage industry have yet to agree to this, but they are cautiously optimistic they will sign off on it as well.