Bush to Announce New Policy on Home Financing

ABC News’ Jennifer Duck reports: President Bush will make a statement in the Rose Garden Friday at 11:10 am on home financing.

A senior administration official tells ABC News the President will outline new policy to help the recent subprime mortgage fallout.

“The President will discuss a number of initiatives and reforms intended to help homeowners with subprime mortgages keep their homes,” a senior administration official said.

Bush is expected to call on Congress to pass reform legislation that would give the Federal Housing Administration the flexibility to assist mortgage holders with subprime mortgages.

“He will discuss his willingness to work with congress in a bipartisan way on legislation to reform the tax code to help troubled borrowers rework their loans,” the official said.

Bush is also expected to call for rigorous enforcement of laws against predatory lending.