Treasury Secretary Henry Paulson said Monday he is confident that a deal would soon be in place that would help thousands of homeowners nearing mortgage default.  The deal is to freeze their interest rates temporarily.

About 2 million subprime mortgages are scheduled to reset to much higher levels by the end of 2008. Those resets will push the payment on a typical mortgage up $350 per month.

One final outstanding issue is how long this freeze should last. Many government regulators are pushing for five to seven years.  On the other side investors, who will see lower payments on the loans, are arguing for a period of one to two years.

We will keep you updated on the outcome of these talks, and the effect this may have on mortgage brokers and bankers.