Bush Housing Plan Unveiled

The highly anticipated bailout plan that Bush and Paulson are proposing was unvelied today. In a nutshell, it involves freezing the rates on mortgages that are set to jump higher for struggling homeowners in jeopardy of losing their homes.

President Bush says under new plan, people that can't afford the higher payments but can afford the current starter rates can get relief in three ways: 1) refinancing into a new private loan; 2) moving into an FHA-Secure loan; or 3) by freezing their rate for 5-years.

Here are some of the highlights from the speech today:

• President Bush urges Congress to reform FNM and FRE
• Paulson says mortgage industry plan is 'no perfect solution'; says plan brings 'greater value than foreclosure'; says mortgage rate freeze to 'minimize' housing slump
• Paulson says, "says subprime relief involves 'no government money" and that this rescue plan is not a "silver bullet"
• 1.2 mln subprime mortgages could be fast-tracked under new plan
• Paulson says we have a healthy economy... says inflation contains a strong labor market, strong export growth fueled by outstanding growth outside of the U.S.
• Says housing is the biggest risk to the economy... says this economy will continue to grow