March 17, 2014
The Bush Administration has announced a new effort to help homeowners avoid being trapped in a rising tide of foreclosures.
Treasury Secretary Henry Paulson says the initiative will bring together 11 of the country's largest mortgage service companies. Other members will include mortgage counseling agencies, investors and large trade organizations.
Paulson says the initiative will coordinate efforts to help the estimated two million homeowners whose introductory mortgages with low rates are now be reset at much higher rates.
The initiative has been dubbed HOPE NOW and it follows an August announcement by President Bush that the administration is making changes in the Federal Home Loan Administration insured-loan program so that more people could qualify for FHA-insured loans.
Democrats have criticized the administration, saying the actions so far have been too little and too late.