House Scheduled To Vote on Housing Rescue Plan

Washington, DC, May 7, 2008--The House is scheduled to vote today on a broad housing rescue package aimed at preventing foreclosures by having the government step in to insure up to $300 billion in new mortgages for struggling homeowners.

The plan--facing a veto by President Bush--would let the Federal Housing Administration insure more affordable fixed-rate loans for borrowers who are currently unable to qualify.

The White House says the plan is a burdensome bailout that would open taxpayers to too much risk. Democrats' included measures supported by some Republicans, as well as others President Bush said he supports.

They include legislation to overhaul the Federal Housing Administration, and to more tightly regulate Fannie Mae and Freddie Mac, the government-sponsored companies that finance home loans. Also part of the plan is a measure, which Bush has requested, allowing state and local housing finance agencies to use tax-exempt bonds to refinance distressed subprime mortgages.