Well, three days ago I'd noted that the Senate was debating its version (similar but not exactly the same) of Barney Frank's bill that passed the House recently. Yesterday, the chairman of the Senate Banking Committee, Sen. Dodd of Connecticut, accompanied by the ranking Republican, Sen. Shelby of Alabama, announced that their bill has reached the stage of proceeding forward on a bi-partisan basis. It will allow the FHA to support up to $300 Billion in new loans to homeowners facing foreclosure who might otherwise be unable to refinance. Money for the plan would come from an affordable housing plan funded by profits of Freddie Mac and Fannie Mae. Borrowers would have to demonstrate that they could afford the new loans, and lenders would have to agree to take a cut in their planned profits as a result of the swap from existing loans to the new ones.
The Bush administration, on record with a veto threat for Rep. Frank's version, has not yet taken a position on this bill. Stay tuned.
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