Housing Reform Legislation In Both Senate and House

On May 8th, the U.S. House of Representatives passed a housing package, in a vote of 266-154. The package includes FHA reform suggested earlier this year by House Financial Services Committee Chairman Barney Frank authorizing FHA to insure up to $300 billion to refinance troubled loans. The proposed FHA reform and the proposed $4 billion funding package for local governments to buy foreclosed properties have met with heavy opposition, including a threat from President Bush of a veto. The Senate is currently debating its own version of this package that also includes the $300 billion FHA reform and $4 billion funding package. Despite the opposition to these reforms from critics and the White House, a number of proposals to stall or gut the bill have been voted down by large margins, implying strong bipartisan support. However, Frank has stated that the House is not prepared to accept the Senate's package as-is, focusing on the differences between the two versions' GSE reforms. Congressional leaders stated that they plan to deliver the bill to the president before the Congress breaks on July 4th.