Will the government save our beleaguered homeowners *thisclose* to losing their homes? I’m not banking on it, but maybe you all have more faith than I do in the federal government. Read on:

 WASHINGTON — The Bush administration and major financial institutions are close to agreeing on a plan that would temporarily freeze interest rates on certain troubled subprime home loans, according to people familiar with the negotiations. …

The plan is being negotiated between regulators including the Treasury Department and a coalition of mortgage-related companies including Citigroup Inc., Wells Fargo & Co., Washington Mutual Inc. and Countrywide Financial Corp. People familiar with the talks say the individual members have agreed to follow any agreement reached by the coalition, which is called the Hope Now Alliance.

Many subprime loans carry a low “teaser” interest rate for the first two or three years, then reset to a higher rate for the remainder of the term, which is typically 30 years in total. In a typical case, the rate would rise to around 9.5% to 11% from 7% or 8%. That would boost an average borrower’s payment by several hundred dollars a month.

Exactly which borrowers will qualify for the freeze and how long the freeze would last are yet to be determined. Under one scenario, the freeze could run as long as seven years. The parties are developing standard criteria that would determine eligibility. The criteria should be finalized by the end of year.

So you saw the part I bolded, right? Yet to be determined. That means “No one’s really thought about implementing anything, but we’re leaking it to the press because it makes us look good/like we’re doing something,” a typical political motivation.  And “end of the year,” means before New Year’s Eve.

 Are you betting our members of our illustrious government will forego their three weeks of vacation to work on this deal? I have my doubts, too.