US President George W Bush is expected to unveil plans later today to help homeowners with sub-prime mortgages - people on low incomes or with poor credit ratings - avoid defaulting on their repayments.

The president is also expected to outline a plan to prevent such a crisis from recurring, that could include legislation to prevent irresponsible lending.

The recent sub-prime mortgage crisis has hit lenders in the US and Europe and financing institutions that have bought debt that include these loans.

The Wall Street Journal today reported that President Bush is likely to allow the government-backed mortgage insurer, the Federal Housing Administration, to guarantee loans for borrowers who are more than 90 days behind with their payments.

Democrats have assailed the Bush administration to ensure that regulators implement rules that oblige lenders to make sure borrowers will be able to repay their loans.
also see : General reports on Banks & Financial Institutions