WASHINGTON — The Senate was scheduled Friday afternoon to resume consideration and possibly vote on a measure that would provide relief to those affected by the subprime crisis in part by expanding the availability of government-insured mortgages.
The bill would create an affordable housing fund, paid for by Fannie Mae and Freddie Mac. The fund would provide $500 million for foreclosure rescues in the first year. The measure also tightens regulations of Fannie and Freddie, the main purchasers of mortgages from credit unions. It creates a new regulatory entity, the Federal Housing Finance Agency.
The well being of Fannie and Freddie has been of major concern recently. Their stocks have fallen in value in recent days and several newspapers have reported that the government is drawing up contingency plans in case they have trouble raising capital.
Treasury Secretary Henry Paulson said Friday that the primary focus is “supporting Fannie Mae and Freddie Mac” in their current form” and passing the housing bill would “promote confidence in these companies.”
The House passed a similar bill earlier this year and lawmakers in both chambers have said they hope to reconcile the two versions by the time Congress recesses at the end of July.
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