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Bush to outline administration's response to mortgage crisis

WASHINGTON (AP) -- A senior official says President Bush will discuss his administration's response to the subprime mortgage crisis Thursday. The official refused to discuss what elements would be in the package of proposals. However, congressional sources say they expect the administration to unveil the details of an agreement hammered out with the mortgage industry. It would freeze interest rates on thousands of subprime mortgages that are scheduled to reset to sharply higher rates. The plan would be an effort to curb an explosion in defaults that is occurring as interest rates on subprime mortgages reset to levels that in many cases are boosting monthly payments by as much as 30 percent. An estimated 2 million subprime mortgages are expected to reset over the next two years. However, the administration's plan is expected to only cover borrowers who have kept current on their monthly payments at the introductory "teaser" rates.

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