Senate Advances Housing Bill

On Monday, President Bush reiterated his plan to veto any legislation that provides a “bailout” for homeowners in foreclosure. Today, the Senate Banking Committee voted to approve a plan to allow the federal government to insure up to $300 billion in refinanced loans for homeowners in financial distress. Major features in the housing package passed earlier this month by the U.S. House of Representatives are included in the Senate bill, including reforms to Fannie Mae and Freddie Mac, and as well as the FHA's foreclosure prevention measure.

On the Senate Banking Committee, Chairman Christopher Dodd (D-Conn.) and Ranking Member Richard Shelby (R-Ala.) worked together on the bipartisan bill designed bring stability to the housing market and help stem the rising rate of foreclosures. The Banking committee voted Tuesday to pass the Federal Housing Finance Regulatory Reform Act of 2008. Once the full Senate considers the bill, there will need to be a House-Senate conference committee resolution of any technical differences in the bills before the final package is forwarded to the President for consideration.

Last week, I reported details on this proposed legislation as it came out of the House of Representatives and some discussion about why it may never become law. Click here to read the post.

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