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| 39 Republicans Join Democrats As Mortgage Bill Passes House |
| Posted by Karen (karen) on May 09 2008 at 7:45 PM |
Friday, May 9, 2008 - The Washington Post - Lori Montgomery
The House yesterday approved an ambitious plan to rescue hundreds of thousands of homeowners at risk of foreclosure by helping them trade exotic loans with rapidly rising monthly payments for more affordable mortgages backed by the federal government.
Bucking a White House veto threat, 39 Republicans joined Democrats in supporting the bill, the centerpiece of a broader housing package that represents Washington's most aggressive response to the nation's housing crisis. The measure aims to unfreeze mortgage markets by expanding the Federal Housing Administration's reach and strengthening mortgage giants Fannie Mae and Freddie Mac. It also would create a $7,500 tax credit for first-time home buyers to try to boost sales and slow plummeting home prices.
GOP House leaders blasted the bill as a bailout for speculators and irresponsible borrowers. But the measure, sponsored by House Financial Services Committee Chairman Barney Frank (D-Mass.), gained strong support from rank-and-file Republicans worried that escalating foreclosures are ruining lives and decimating neighborhoods.
Despite President Bush's condemnation of the bill this week, White House officials seemed to leave the door open to negotiation. And key Republicans are working with Democrats on a similar plan in the Senate.
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