Bush’s Plan Brings FHA To Mortgage Front Line

President Bush’s plan yesterday to stem the rise of mortgage defaults put the spotlight on the Federal Housing Administration, which steadily lost relevance in recent years as more-aggressive private lenders came to dominate the marketplace. Bush said yesterday that some subprime, or high-risk, borrowers would for the first time be able to refinance into loans insured by the FHA starting next week.

He said the government has got a role to play in helping homeowners struggling to hold onto their homes. President Bush’s plan yesterday to stem the rise of mortgage defaults put the spotlight on the Federal Housing Administration, which steadily lost relevance in recent years as more-aggressive private lenders came to dominate the marketplace.