The government led by Secretary Paulson announced a potential aid to homeowners with variable rate mortgage loans.

There is growing speculation that the government will get involved and attempt to work with mortgage lenders in a resolution to try and help reduce the number of homes that are going into foreclosure. One proposal would involve lenders capping the rates of variable or adjustable mortgage loans to help home owners who have variable loans avoiding the payment shock from their house payments moving up. This would most likely be a cap that would last one or two years, a period that most economists believe will be necessary for the housing market to turn around.

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