WASHINGTON (MarketWatch) -- About 45,000 out of 1.8 million at-risk subprime borrowers have asked for help to refinance their mortgage under an industry-wide plan to prevent foreclosures, Treasury Secretary Henry Paulson said Monday.

In a speech in New York, Paulson said the Treasury-backed plan to prevent subprime foreclosures has now been joined by firms representing 90% of the subprime market. Within a few weeks, the industry will begin "fast-tracking" some qualified borrowers into new, affordable loans, Paulson said.

The effort could be extended to other adjustable-rate loans, not just subprime loans, Paulson suggested.

"A housing correction was inevitable and necessary," Paulson said.

In brief remarks on the economy, Paulson said he expected it to "continue to grow."

"Our economy remains resilient," he said.

Paulson repeated his call for Congress to pass legislation to allow the Federal Housing Administration and the government-sponsored entities of Fannie Mae FNM, +0.85% and Freddie Mac FRE, -0.64% to handle more loans.

Paulson encouraged banks and other financial institutions to strengthen their balance sheets and raise more capital if necessary. "This is market discipline in action and should enhance market confidence over time," he said. "It is a positive for financial institutions, capital markets and our economy."

While some have worried that big U.S. financial firms are being sold off to foreigners, Paulson said he wasn't worried. "When the world invests in the United States, it is the ultimate vote of long-term confidence in our economy and our companies."

Paulson noted improvement in short-term credit markets in recent weeks.

Central banks' efforts to flood the financial system with short-term loans "are having their desired effects," the former Goldman Sachs chairman said. "The spread between Libor and fed funds futures has shrunk significantly" and "there has been progress in the asset-backed commercial paper market."

The White House won't rush to propose new ideas to supervise financial markets or to stimulate the economy, Paulson said.

"Working through the current situation and getting the policy right is more important than getting the policy announced quickly," he said, in excerpts of a speech planned for later Monday.

President Bush hinted in an interview last week that his administration is contemplating a fiscal stimulus program, which would likely be announced at the State of the Union speech later in January. Fiscal policy generally refers to federal taxing and spending.

"Let me be clear that no single policy or action will undo the excesses of the last few years," Paulson said.