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It's expected the deal will only apply to owner-occupied homes -- not those purchased by speculators. Only homeowners who are current on their payments but cannot afford a higher adjusted rate would be eligible. Borrowers with loans made between Jan. 1,  2005, through July 30 of 2007 who face interest rate resets between Jan. 1, 2008, and July 31, 2010, would reportedly be able to seek a reprieve.

There has been considerable debate about this proposal, and whether you like it may depend on who you are. If you are a prospective homebuyer rooting for massive price declines, the plan may be bad news, because its most fundamental goal is to prop up home prices

So what's the bottom line for the industry? You tell us. If the more than 2 million ARM loans that are scheduled to reset in the next two years are allowed to do so, will there be any lenders around to finance home purchases? Will an interest rate freeze keep prices from returning to levels that are based on market fundementals, and discourage buyers from reentering the market?