Bush pledges help for borrowers

US President George W. Bush today announced a slew of measures to help homeowners in the US who have been hit by the subprime mortagage crisis, but refused to bail 'speculators' out.

"I plan to help homeowners. The government has a role to play,'' Bush said in a statement at the White House. However, he added, "it's not the government's job to bail out speculators, or those who made the decision to buy a home they knew they could never afford.''

Bush said he will let the Federal Housing Administration, which insures mortgages for low-and middle-income borrowers, guarantee loans for delinquent borrowers, allowing them to avoid foreclosure and refinance at more favorable rates.

"One of the most troubling developments has been the increase in adjustable rate mortgages that start out with a very low interest rate and then reset to a higher rate after a few years. This has led some homeowners to take out loans larger than they could afford based on overly-optimistic assumptions about the future performance of the housing market."

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