WASHINGTON — Defying presidential veto threats, the House on Thursday approved two bills designed to provide relief for those individuals and communities impacted by the mortgage foreclosure crisis.
Lawmakers approved a bill that would provide $300 billion in federal loan guarantees to borrowers with loans worth more than the value of their home. The bill passed 266-154, 25 votes shy of the two-thirds needed to override a veto.
The Congressional Budget Office has estimated the measure, which President Bush said rewards speculators and lenders more than homeowners, would finance about 500,000 mortgages at a cost of $2.7 billion.
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The bill would also overhaul regulation of Fannie Mae, Freddie Mac and the Federal Home Loan Banks. The Bush administration supports those provisions and asked had urged lawmakers to approve them as stand-alone legislation so the president can sign them.
By a 239-188 vote, lawmakers also passed a bill to make $15 billion in loans and grants available to states and cities to deal with problems caused by the foreclosure crisis. Some of the funds could be used by governments to purchase foreclosed properties. That measure fell 53 votes short of the number needed to override a veto.
CUNA and NAFCU backed both measures.
The bills face an uncertain future in the Senate, where Democrats hold just a slim majority -49 Democrats, 49 Republicans and two independents who usually align themselves with Democrats–and where Senate Banking Committee Chairman Christopher Dodd (D-Conn.) has said he plans to introduce his own legislation on these issues.
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