Bush Promises Mortgage Relief

The government will roll up its sleeves and aid homeowners battered by the subprime mortgage crunch, but it will forsake “speculators” trying to exploit the crisis, President Bush said today. The FHA will step in and help delinquent borrowers avoid foreclosure by refinancing at lower rates, but experts predict more than 2 million Americans will lose their homes, Bloomberg reports.

Tighter credit conditions and higher borrowing costs have been squeezing homeowners, and Democrats have slammed Bush for not stepping in. The president said a new government program will allow "many families who are struggling now" but have good credit to refinance. An industry executive called the initiative “well-timed,” especially as private lenders bail on loans. (More housing market stories.)