WASHINGTON — The House Financial Services Committee on Thursday pushed forward with an aggressive effort to help troubled homeowners, approving a package of legislation that would make up to $300 billion in federally insured loans available to refinance the mortgages of borrowers in danger of foreclosure.
With passage of the bill virtually assured in the House, the debate over how best to address the downturn in housing now shifts back to the Senate where Democrats drafting a similar plan must overcome the reservations, if not outright opposition, of a more robust Republican minority.
President Bush has called on Congress to pass very specific legislation to update the operations of the Federal Housing Administration; to tighten regulation of the government-sponsored lending companies, Fannie Mae and Freddie Mac; and to let state and local housing authorities use tax exempt bonds to refinance bad loans.
But Mr. Bush opposes the more expansive legislation pursued by Democrats.
The Financial Services Committee approved the bill by a vote of 46 to 21, with 10 Republicans joining the Democrats in favor of it. (more…)
