U.S. Senate Panel Reaches Agreement on Anti-Foreclosure Measure

Bloomberg (05/16/08); Vekshin, Alison; Kopecki, Dawn
The U.S. Senate Banking Committee has tentatively come to terms on an anti-foreclosure measure, which calls for Fannie Mae and Freddie Mac to cover at least some of the costs associated with insuring mortgages for struggling borrowers. The measure would strengthen regulation of both government-sponsored enterprises and permit at-risk borrowers to refinance their homes with government-backed mortgages via the Federal Housing Administration. Legislators expect to resolve the few remaining differences in time for a May 20 vote. If majority approval is reached in the full Senate, the package would then be combined with a bill passed earlier this month by the U.S. House of Representatives. Sen. Richard Shelby, R-Ala., the banking committee's ranking Republican, has expressed confidence that the White House will support the Senate measure despite earlier veto threats.