Senate Housing Bill Moves Toward Passage

Washington Post (07/11/08) P. D1; Montgomery, Lisa
The Senate has voted 84 to 12 in favor of moving on to the final portion of a housing measure designed to rescue thousands of homeowners from the threat of foreclosure while restoring confidence in Fannie Mae and Freddie Mac. The legislative package would then go back to the House, where leaders are expected to make revisions that would require both chambers of Congress to vote again before advancing the measure to President Bush. Under the proposal, the Federal Housing Administration would have the go-ahead to insure up to $300 billion in new loans for households whose lenders agree to write down their debt to no more than 87 percent of the homes' current value. The package also contains an overhaul of the FHA and housing-related tax breaks worth $14.5 billion.