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July 25, 2008 12:15:33 AM CDT

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Bush to Unveil Bailout Plan in Mortgage Crisis

Posted Aug 31, 07 5:42 AM CDT in US,  Business 

(Newser) – President Bush will announce a rescue package for homeowners with subprime mortgages faced with foreclosure. The package will include a call for Congress to give the Federal Housing Administration more power to help borrowers keep their homes—and stricter enforcement of laws against predatory lending, Reuters reports.

Economists fear worried homeowners will rein in spending enough to tip the economy into a recession. The Federal Reserve has already taken independent steps to increase the money supply and may cut interest rates next month. Bush will also outline reform efforts to "prevent these kinds of problems from happening in the future," an official said.

Source Reuters

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A foreclosure sign tops a sale sign outside an existing home on the market in northwest Denver on Wednesday, Aug. 29, 2007. The economy grew at its strongest pace in more than a year during the spring...   (Associated Press)
A sign advertises a bank repossessed home for sale in San Clemente, Calif., Sunday, Aug. 5, 2007. Foreclosure filings rose 9 percent from June to July and surged 93 percent over the same period last year,...   (Associated Press)
President Bush speaks about the Mississippi rebuilding efforts Wednesday, August 29, 2007, in Bay St. Louis, Miss. (AP Photo/Evan Vucci)   (Associated Press)
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George W. Bush  • Bush administration  • subprime mortgages  • Federal Reserve  • recession  • credit crisis  • foreclosure  • borrowers  • homeowners  • Federal Housing Administration


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