The Bush Administration announced it is expanding federal mortgage assistance for subprime borrowers who are at risk of losing their homes, giving the Dept. of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) increased flexibility to insure more mortgages.

Under HUD’s FHASecure expansion plan, some 500,000 families are expected to be able to refinance into prime-rate, FHA-insured mortgages by the end of this year.
“Our plan will help hundreds of thousands of desperate families who have no place else to turn for safer, lower cost ways to keep their homes,” said Federal Housing Commissioner-Assistant Secretary for Housing Brian D. Montgomery. “We want to be able to help families who are in the right house, but the wrong mortgage.”