WASHINGTON — President Bush has dropped his opposition to the housing bill scheduled to be voted on in the House today, his press secretary said this morning.
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. It also includes a provision to allow the Treasury Department to buy shares of Fannie and Freddie if those mortgage buyers need new capital.
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In the past, Bush had expressed concern about a provision to include $4 billion to help neighborhoods affected by foreclosures.
"We believe this is not a time for a prolonged veto fight but we are confident the president would prevail in one," White House press secretary Dana Perino told reporters today.
House and Senate leaders have said they hope to complete action on the measure before Congress begins its August recess at the end of next week.
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