Bill Includes Relief For Fannie, Freddie; Tense Negotiations
By MICHAEL R. CRITTENDEN and DAMIAN PALETTA
July 23, 2008; Page A3
WASHINGTON -- House and Senate leaders have largely hammered out a compromise deal on a mammoth housing package that would permit the government to bolster
Fannie Mae and
Freddie Mac in an emergency, overhaul supervision of the housing-finance giants and allow the government to insure up to $300 billion in refinanced mortgages.
The deal comes after tense negotiations and is likely to remain a source of contention when the House of Representatives votes Wednesday. The nonpartisan Congressional Budget Office said Tuesday that a temporary measure to prop up Fannie Mae and Freddie Mac could cost the government as much as $25 billion. And despite repeated White House veto threats, lawmakers plan to include a $4 billion program that would allow local governments to buy and rehabilitate foreclosed properties.
It remained unclear whether the White House would follow through on veto threats, particularly because administration officials have actively lobbied in support of major provisions.
"It's a lengthy bill and we're reviewing the language," White House spokesman Tony Fratto said. "It's clear that the Democrats chose to play politics with the legislation, and unfortunate that they're doing it with legislation that will prevent systemic risk to our financial system."
Read Full Article on The Wall Street JournalLabels: damian paletta, fannie mae, freddie mac, housing bill, lawmakers, michael r. crittenden, wsj.com
