Housing Bill Up Against Presidential Rejection, New Senate Proposal

Washington, D.C.–In addition to a probable presidential veto, the housing bill passed Thursday by the House faces another obstacle: A similar proposal from Senate Banking Committee Chairman Chris Dodd, D-Conn.The House’s bill will help only a small amount of homeowners prevent foreclosure and would cost taxpayers $2 billion–less than original estimated, according to CNNMoney.com.Passed by a 266-154 margin, the bill sponsored by House Financial Services Chairman Barney Frank, D-Mass., is unlikely to advance past the president, according to members of the Bush Administration.The new housing plan would let the Federal Housing Administration guarantee a new loan if the lender agrees to accept payment that would be no more than 85 percent of the home’s appraised value. Lenders would get more than if the property falls into foreclosure; borrowers would get a more affordable fixed-rate loan.Dodd’s proposal could go to vote before the Senate Banking Committee this week.