Purchased HELOC.

Get that term into your head. Home equity loans that were purchased from other originators are the scourge of the system. Any piece of paper backed by these second liens that were issued by pure mortgage originators is just a goner.

This is the paper that was generated by Fremont General (NYSE: FMT) (Cramer's Take) and NovaStar (NYSE: NFI) (Cramer's Take) and New Century Financial and American Home Mortgage and so many of the other bankrupt and walking-dead companies. It was mostly no-documentation loans paper and served as another way to tap money that was meant to be paid back when you flipped a home. It was predicated on the continued increase in value of your home.

President George Bush seems an unlikely hero for Wall Street, but he is just that this morning.

The president intends to announce his plan to ease the plight of the subprime mortgage industry. Having so many voters without homes is not working out.

But, the law of unintended consequences is kicking in. Home builders are up big while the market waits for the Bush plan announced in about two hours. Beazer Homes (NYSE: BZH) is rallying off a level near its 52-week low and is up 8% to $10.65. Lennar (NYSE: LEN), Hovnanian (NYSE: HOV) and other large home builders are up sharply was well.

Over on the real estate lending side of town, Fremont General (NYSE: FMT) is up 15% and Countrywide Financial (NYSE: CFC) is in the green by 7%.

According to several press reports picked up by MarketWatch: "The Federal Housing Administration mortgage insurance program will be changed to allow more people to refinance with FHA insurance if they fall behind on adjustable-rate mortgages."

However, no one outside the Bush administration is likely to know much about the details of the plan yet and some of the proposals may require approval from Congress.

This means that just after Mr. Bush's speech, the home building and mortgage lending stocks could go right back down.

Douglas A. McIntyre is a partner at 24/7 Wall St.