Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

White House nears plan to freeze subprime rates

Administration sources say an agreement with the mortgage industry to freeze interest rates on subprime loans is near.

Subscribe to Real Estate
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

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. To top of page



Photo Galleries
Brexit voices: In or out? CNNMoney speaks to British people to find out their views ahead of the referendum on EU membership. More
10 key facts about the U.S. economy Unemployment is down, gas is cheap and America is growing. But just how strong is it? More
10 best investing apps (and sites) Investing should be cheap, effective and easy. These products simplify your financial life. More