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Bulletin: FHA Modernization Approved in Senate, 83-9

by Peter G. Miller
June 25th, 2008

FHA modernization has passed the Senate by a vote of 83-9.

The legislation, among other features, would allow the FHA to insure up to $300 billion in new financing to help homeowners with toxic loans who face foreclosure.

However, the bill is not a give-away — borrowers would face stiff fees to enter the program and would lose a share of any profits when the property is sold. Lenders would lose on every refinanced loan.

The “Housing and Economic Recovery Act of 2008″ was strongly supported by both Senator Chris Dodd (D-CT) and Senator Richard Shelby (R-AL), respectively the chairman and ranking member of the Senate Committee on Banking, Housing and Urban Affairs.

Alternatively, the White House threatened to veto the measure, a threat without substance in the face of yesterday’s lopsided and bipartisan vote.

Passage with strong bipartisan support has been predicted here for several obvious reasons:

First, the foreclosure crisis is getting worse not better.

Second, Republican senators up for re-election did not want to be seen as opposing help for those facing foreclosure.

Third, Mr. Bush is a lame-duck president who has achieved Nixon-like levels of public dislike.

The Senate and House measures, which differ, must now be unified into a single bill by a conference committee. On Capitol Hill the idea is to see if this can be done before the July 4th recess, a tight schedule.

Voting against the measure were Senators Jon Kyl (R-AZ), Mike Crapo (R-ID), Jim Bunning (R-KY), David Vitter (R-LA), Chris Bond (R-MO), John Ensign (R-NV), Jim Demint (R-SC), John Barrasso (R-WY) and Mike Enzi (R-WY). Given the steep foreclosure levels in Nevada, the vote by John Ensign is particularly remarkable.

With regard to the presidential campaign, neither Sen. McCain nor Sen. Obama were present for the vote.

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This entry was posted on Wednesday, June 25th, 2008 at 2:30 am and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

2 Responses to “Bulletin: FHA Modernization Approved in Senate, 83-9”

  1. JENNIFER Says:

    Republicans they’re really for the people.Tisk Tisk Jim Bunning what happened to” You’re fighting for us and deserve our trust” slogan?How we forget when you get what you want.

  2. Steve Says:

    The fleecing of taxpayers to bailout irresponsible lenders and borrowers continues unabated. I applaud the nine senators who did their job and at least tried to protect the rest of us.

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