The Federal Reserve and other U.S. financial regulators urged lenders on Tuesday to take actions to help homeowners facing default.

In a joint statement, regulators encourage federally regulated financial institutions and state-supervised entities that service securitized residential mortgages "to identify borrowers at risk of default and pursue appropriate loss mitigation strategies designed to preserve homeownership."

"Significant numbers of hybrid adjustable-rate mortgages will reset throughout the remainder of this year and next," the statement said.

It said that "many subprime and other mortgage loans have been transferred into securitization trusts that are governed by pooling and servicing agreements."

"These agreements may allow servicers to contact borrowers at risk of default, assess whether default is reasonably foreseeable, and, if so, apply loss mitigation strategies designed to achieve sustainable mortgage obligations."

Appropriate loss mitigation strategies may include, for example, loan modifications, deferral of payments, or a reduction of principal, said the statement.

In addition, institutions should consider referring appropriate borrowers to qualified homeownership counseling services that may be able to work with all parties to avoid unnecessary foreclosures, it said.

The statement was issued by the U.S. central bank and the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, Office of Thrift Supervision, the National Credit Union Administration and state banking regulators.

It came after U.S. President George W. Bush on Friday called for measures to help Americans who have credit problems meet the rising cost of their housing loans.

The once-sizzling U.S. housing sector has cooled off significantly since last year. Falling home prices and rising interest rates made many homeowners face default and foreclosure.