According to a recent article on NYSAR - A bill to prevent thousands of homeowners from foreclosure is still on schedule to proceed to President Bush for signature prior to July 4.
While Senate Banking Committee Chairman Christopher Dodd and other legislators have stated for weeks that they want to reach a compromise on a final bill and send it to Bush by that date, the full Senate still has not voted on legislation approved by Dodd's committee in May. The House also sanctioned its own bill in May.
As composed, the Senate version would establish a new, $300 billion federal mortgage insurance fund that could protect a half-million borrowers from foreclosure. Lenders would have to forgive part of the initial loan amount to take part. In addition, the legislation would create a stricter regulator for mortgage-finance agencies Fannie Mae and Freddie Mac.
Congress is attempting to stop a slew of foreclosures predicted to impact 1.4 million households in 2008 as home values decline and mortgage borrowers fail to meet payment obligations. Although the House bill is similar to the Senate's, how to bankroll the insurance fund remains a point of contention.
Reuters (06/09/08) Drawbaugh, Kevin
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