Countrywide Financial plans to announce Tuesday that it will restructure or refinance $16 billion in adjustable-rate mortgages that have recently reset to higher rates or will reset by the end of next year, stretching some homeowners to the breaking point.

Its plan comes as the mortgage industry tries to head off mounting political and public pressure and an alarming foreclosure rate. Countrywide, (CFC) the nation's largest mortgage lender, says its program will help about 82,000 borrowers, mainly those with "subprime" credit.

"Changes in the housing market have occurred, and the trends are weakening," David Sambol, Countrywide's president, said in an interview Monday. "Our leadership position in the marketplace requires us to do more.

"Our desire to help our borrowers very much aligns with our interests: helping people stay in their homes and avoiding foreclosure losses for our company and our investors."

The plan would benefit Countrywide borrowers who:

Are in default on their loans because of an interest-rate reset in the past few months. Countrywide will send a letter offering to roll back their rate to the previous, lower level. Countrywide expects to modify 10,000 of these loans, totaling $2.2 billion, by the end of this year.

Are likely to have difficulty affording an upcoming rate increase and are unable to refinance. Countrywide will modify the loan to a rate that will keep borrowers in their homes. The lender says it expects to modify 20,000 loans totaling $4 billion through the end of next year.

But those borrowers who fall behind because they've lost their jobs and lack enough income to keep up with a mortgage won't qualify.

Had subprime credit but have been making payments on time. Countrywide will offer to refinance them into a lower-interest "prime" loan, or a mortgage insured by the Federal Housing Administration, Fannie Mae (FNM) or Freddie Mac. (FRE) The lender estimates that about 52,000 borrowers would qualify for a new loan, and it expects to refinance $10 billion in mortgages.

These borrowers, however, will have to pay the fees to refinance their loans.

Josh Fuhrman, director of counseling for the Homeownership Preservation Foundation, said, "There are a lot of new options and products coming out right now. A lot of the other (loan) servicers are starting to be more flexible, but (Countrywide's plan) is pretty specific and looks on the surface to be pretty solid."

The mortgage industry is under pressure from politicians, regulators and consumer advocates to speed up and boost the number of loan modifications for homeowners in trouble.

Last week, Treasury Secretary Henry Paulson warned of an "immediate need" for more loan restructurings and modifications.