Senate ready to debate housing stimulus plan
A bipartisan housing stimulus bill could be debated in the Senate as early as Thursday, Senate Majority Leader Harry Reid said. The move comes as experts say that lawmakers must act swiftly if they hope to prevent a substantial number of foreclosures this year. Nationwide, 1.5 million subprime adjustable-rate mortgages will reset to higher interest rates this year, and many of those homeowners are at risk of falling behind on their payments. The parties in the Senate have "agreed in principle" on measures to be included in the bill, said Reid, a Nevada Democrat. Those measures have not been made public. However, Senate Democratic and Republican leadership aides said the legislation contains: • $4 billion in community block grants for states and local governments to buy and refurbish foreclosed properties; • New bond authority for states that can be used to refinance subprime mortgages; • Tax credits for people who buy and occupy homes in or near foreclosure. Sen. Johnny Isakson, R-Georgia, has proposed a $15,000 credit, but no dollar amount has been agreed on so far; • Tax benefits for homebuilders to reclaim past taxes paid; • New disclosure and transparency requirements for loans; • New money for foreclosure counseling; • New Federal Housing Administration rules that would reduce down payments on FHA loans and an increase in the size of a mortgage the FHA can insure. The bill will fully amendable, including dollar amounts and details of the various programs, the aides said. A GOP leadership aide said final action on the bill probably won't take place until next week. Reid and Senate Minority Leader Mitch McConnell, R-Kentucky, issued a written statement saying, "We hope to quickly come to a consensus to move this bill to the floor, consider amendments to it and pass strong legislation that helps struggling homeowners and our economy as a whole." |
