WASHINGTON (CNN) – The administration is close to an agreement to freeze rates for homeowners facing possibly sharp increase in mortgage interest rates, according to administration sources.
The officials say 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 prove they cannot afford a higher rates.
Officials caution that the mortgage industry has yet to agree to this but they are cautiously optimistic they will sign off on it as well.
- CNN's Ed Henry and Jessica Yellin