Talk about change…but only talk
Filed under: Housing Reform, Mortgage Industry Legislation — admin @ 1:45 pm
In the eternal death march of progress on capital hill, the housing reform and rescue bill is once again set for a vote on Wednesday. However, negotiations have again stalled as the White House threatens to veto the bill over an allocation of $4b to allow state and local governments purchase foreclosed properties for resale. This is despite an inclusion of the changes to the legislation that Treasury Secretary Henry Paulson sought on the Hill last week, allowing increased authority for the Treasury to purchase unlimited amounts of debt and equity from the GSEs and offer the Fed a role in GSE regulatory authority. Despite opposition from the Administration, most insiders expect President Bush to sign the bill.
The bill is still in negotiation to settle the differences between the House and Senate packages, but political pressure seems to be enhancing a “spirit of compromise.”