As reported in the AP Barney Frank’s housing rescue bill passed its’ first hurdle Thursday behind Democrats and several Republicans who broke ranks with the White House on the measure. Here are some excerpts:
Democrats and several Republicans on the House Financial Services Committee banded together Thursday to pass a $300 billion housing rescue package.
The vote was 46-21 to advance the bill, which would permit the government to insure new, cheaper mortgages for hundreds of thousands of struggling homeowners now facing foreclosure.
Ten Republicans shrugged off President Bush’s objections and joined all the Democrats present to support the bill, sponsored by Rep. Barney Frank, D-Mass., the committee chairman. Most of them are from areas hit hard by the mortgage meltdown.
Democratic leaders are planning votes in the full House next week on the housing package.
Frank said the breadth of GOP support for the plan in his committee indicated that there could be enough votes to override a veto — which takes two-thirds — but he said he was optimistic that wouldn’t be necessary.
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Democrats held off several Republican challenges that would have sharply limited the bill’s scope, excluding people with poor credit and past delinquencies, and allowing lenders to recover their losses.
The administration calls the plan an overly risky bailout, although it has made similar changes to let FHA reach homeowners in distress. Its program, however, is limited to those with good credit and a history of making timely payments.
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In the Senate, Banking Committee Chairman Christopher Dodd, D-Conn., plans a committee vote next week on a bill similar to Frank’s.
