US
President George W Bush is expected to unveil plans later
today to help homeowners with sub-prime mortgages - people
on low incomes or with poor credit ratings - avoid defaulting
on their repayments.
The
president is also expected to outline a plan to prevent
such a crisis from recurring, that could include legislation
to prevent irresponsible lending.
The
recent sub-prime mortgage crisis has hit lenders in the
US and Europe and financing institutions that have bought
debt that include these loans.
The
Wall Street Journal today reported that President
Bush is likely to allow the government-backed mortgage
insurer, the Federal Housing Administration, to guarantee
loans for borrowers who are more than 90 days behind with
their payments.
Democrats
have assailed the Bush administration to ensure that regulators
implement rules that oblige lenders to make sure borrowers
will be able to repay their loans.
also see : General
reports on Banks & Financial Institutions
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