Mortgage plan on FDIC site

Washington —- Publicly breaking with the Bush administration’s official stance, the Federal Deposit Insurance Corp. proposed Friday to use $24 billion in government funding to help 1.5 million American households avoid foreclosure.

The FDIC posted the plan on its Web site two days after Treasury Secretary Henry Paulson rejected the idea of using money from the $700 billion bailout of the financial industry to pay for such a proposal. A Treasury spokeswoman declined comment Friday.

The agency’s plan would guarantee 2.2 million modified loans through the end of next year. Borrowers would get reduced interest rates or longer loan terms.

“If we can avoid those foreclosures, then you will get more stability in the housing market,” said Michael Krimminger, a senior adviser to FDIC Chairman Sheila Bair, said in an interview Thursday.