Some struggling homeowners left out of current U.S. government mortgage-aid programs because their home loans have been packaged into private securities could see their interest rates cut through a subsidy being considered by the Treasury Department.

Under the plan, the government would pay the difference between the new and original interest rates to the owners of the loans for five years in an effort to overcome investors’ objections to mortgage modifications, according to a person familiar with plan who asked not to be identified because the initiative is not final or public. Details on the cost of the program and how it would be paid for were not available.

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