- Signs of Stability, but 'We're Not All Satisfied': GM CEO
- Weak US Housing Market Drags on Lowe's Profit
- There's a Gold Bubble: Gartman
- BlackRock: Central Banks To Be Net Buyers of Gold
- Cisco Ups Tandberg Bid, Claims Over 40% Backing
- Stronger Yuan Needed for Global Rebalancing: IMF Chief
- Small US Cities Lose Luster in Downturn
- How Much Do You Know About Green?
- Solar Energy Emerges From a Dark Period
- GM Cuts Losses—Plans Early Loan Repayment
- Schork Oil Outlook: Still Bearish Crude, But Skeptical
- Michelle Wie Wins, Now What?
- Taking a Page from Obama's Asia Agenda in Investing
- Warren Buffett to CNBC: 'I Haven't Bought American Express In Years'
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- U.S. Stocks Rally for the Second Straight Week
- Dollar is Not Plunging—So 'Calm Down': Market Strategist
- Strategists Say Markets Have More Upside — But How Much?
MOST SHARED
- U.S. May Wind Up Green With Envy
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- Warren Buffett to CNBC: 'I Haven't Bought American Express In Years'
- Stronger Yuan Needed for Global Rebalancing: IMF Chief
- EADS Cautious on Full-Year Forecast after Earnings Dip
- Taking a Page from Obama's Asia Agenda in Investing
- BlackRock: Central Banks To Be Net Buyers of Gold
- Weak US Housing Market Drags on Lowe's Profit
Text Size 
Rescue legislation sailed through the House Wednesday aimed at helping 400,000 strapped homeowners avoid foreclosure and to prevent troubled mortgage giants Fannie Mae and Freddie Mac from collapsing.
 |
CNBC |
The 272-152 vote reflected a congressional push to send election-year help to struggling borrowers and to reassure jittery financial markets about the health of two pillars of the mortgage market.
Hours before the vote, President Bush dropped his opposition to the measure, which is now on track to pass the Senate and become law within days.
The White House swallowed its distaste for $3.9 billion in grants the bill would provide for devastated neighborhoods.
The Bush administration gains the power to throw a lifeline to Fannie Mae and Freddie Mac as part of the measure that also is designed to rein in the government-sponsored mortgage firms.
The administration and lawmakers in both parties teamed to negotiate the measure, which accomplishes several Democratic priorities, including federal help for homeowners, a new permanent affordable housing fund financed by Fannie [FNM
Loading...
()
] and Freddie [FRE
Loading...
()
] and the $3.9 billion for hard-hit neighborhoods.
The grants are for buying and fixing up foreclosed properties.
"It is the product of a very significant set of compromises," said Rep. Barney Frank, D-Mass., the Financial Services Committee chairman. "We are dealing with the consequences of bad decisions and inaction and malfeasance from years before. Obviously, it requires a joint effort."
In a statement on the bill, the White House said parts of it "are too important to the stability of our nation's housing market, financial system and the broader economy not to be enacted immediately." Bush had objected to the neighborhood grants, saying they would help bankers and lenders, not homeowners who are in trouble.
Still, Dana Perino, the White House press secretary, said a showdown with Congress over the funds would be ill-timed.
It was a striking split for Bush and many congressional Republicans.
GOP leaders denounced the housing legislation as a bailout for irresponsible homeowners and unscrupulous lenders, even as they acknowledged it was probably necessary.
"It's a bill that I wish I could support. It's a bill that the market clearly needs ... but this is not a bill that I can support," said Rep. John A. Boehner, R-Ohio, the minority leader.
Print
Email
- Where, what, how.
- Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
- For the chief of cable company Comcast, growth has been about making deals – generally very large deals.
- Some companies may start using insurance to shift carbon risk from their balance sheets to maybe... yours?
- The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
- If a terrible driver on your morning commute has you feeling like you want to scream, check out this website.
Data is a real-time snapshot *Data is delayed at least 15 minutes