White House is considering expanding the current interest rate freeze program which was announced in December. Secretary of the Treasury Henry Paulson mentioned that borrowers with adjustable rate mortgages not from the subprime category may become eligible.
Originally, this program would only freeze interest rate increases on sub-prime mortgages. The number of people affected by this freeze would be limited. Current consultations involve adding consumers who have adjustable rate mortgages at prime rates. Subprime rates are usually given to consumers with problematic credit.
Paulson also urged Congress to complete the so-called FHA reform which, by his opinion, would help homeowners with subprime adjustable-rate mortgages. It has passed both the House and the Senate and is awaiting committee meetings before being sent to the President.