WASHINGTON — The Senate yesterday passed The Foreclosure Prevention Act of 2008 by a vote of 84-12 after discussions by Senators Chris Dodd (D-Conn.) and Richard Shelby (R-Ala.) on its provisions resulted in a package that would gain wide support.

The legislation will streamline and expand the reach of the FHA; provide counseling to Americans facing foreclosure ($100B); enhance mortgage disclosure requirements; provides community development block grants to buy abandoned or foreclosed properties ($4B); will allow tax-exempt bonds to refinance subprime loans ($10B); and provide a $7,000 tax credit for those who purchase homes in foreclosure.

Progress on assisting homeowners now moves to the House, said NAFCU Director of Legislative Affairs Brad Thaler, where the Ways and Means Committee, which must approve all tax provisions in a bill, did so on Wednesday. “Rep. (Barney) Frank's (D-Mass.) bill will be marked up on April 23 or 24 and those two bills will be married on the floor,” he said. The expectation is that the Senate and House version will go to conference, where contents of the final package will be decided. Given the strong desire to pass legislation to help forestall increasing foreclosures, Thaler said that it was likely it might happen by the end of the month or in early May. “I think Congress would like to have this done before it breaks for its Memorial Day recess.”