From Daily Briefing:
The government’s first try at a housing bailout took another baby step this morning, when Treasury Secretary Hank Paulson sketched the outlines of a plan that could lead to an interest rate freeze on some adjustable rate mortgages. Paulson told an audience in Washington that along with an industry-community partnership called Hope Now, the government aims to do three things to keep a lid on spiking foreclosure rates on loans to less-creditworthy homebuyers.
“First, we are increasing efforts to reach able homeowners who are struggling with their mortgages,” he said in prepared remarks for the national housing forum in Washington. “Second, we are working to increase the availability of affordable mortgage solutions for these borrowers. Third, we are leading the industry to develop a systematic means of efficiently moving able homeowners into sustainable mortgages.”