Mortgage Rescue Plan Approved by Senate
Pursuant to this plan, the Federal Housing Administration would back mortgages designed to be more forgiving for those who are being crushed under the weight of their current housing payments. The bill would also allow banks to recover a certain amount of the money that they would have lost by dealing with so many expensive foreclosures. The plan will help almost an estimated half a million homeowners.
The plan is riddled with tax breaks and help for first-time home buyers. Both Democrats and Republicans banded together to pass this bill with an overwhelming 63-5 vote. However, the Bush administration has already promised to veto the bill, claiming that the plan helps lender more than it does borrowers. There are still too many disagreements among the parties, and Bush’s promise virtually assures that the bill will not be passed into law without certain revisions, despite the continuing struggle amongst homeowners.
